Nigeria is set to receive a significant boost in its refining capacity as a consortium of South Korean investors plans to build four refineries, each with a 100,000-barrel-per-day capacity, in various parts of the country. This development was announced by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, at the first summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
“We encourage investors to build limited refineries by providing an open environment. A recent approval was granted to invite to Nigeria a consortium of investors from South Korea, which intends to establish four 100,000 barrels-model refineries in four different locations in Nigeria,” Lokpobiri stated.
The Federal Government is committed to attracting refinery investments by creating a conducive environment, emphasizing public-private partnerships to drive development in the midstream and downstream sectors of the oil and gas industry.
To ensure energy security, the government has approved equity investment in both modular and larger refineries. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has published guidelines to enhance transparency and facilitate local refinery access to crude oil supplies.
“In addition, we prioritise and work with stakeholders to ensure effective implementation of the recommendations of the Modular Refinery Committee to give special concession to local refineries’ owners, thereby guaranteeing feedstock to their refineries,” Lokpobiri added.
The government plans to deregulate the downstream sector fully and implement measures to mitigate the impact on low-income households.
To support refinery development, the government will simplify access to tax exemptions for importing refinery equipment. Additionally, the Petroleum Industry Act (PIA) may be amended to allocate part of the National Gas Infrastructure Fund to support refinery-related infrastructure.
The ministry also aims to foster partnerships for knowledge transfer and workforce development in refinery operations.
“In no distant time, we intend to create the apprenticeship programme in collaboration with existing refineries to develop expertise in our refinery operations,” Lokpobiri disclosed.
To combat crude oil theft and illegal refining, an international emergency committee has been established to find home-grown solutions for refining within the country.
This investment is expected to significantly enhance Nigeria’s refining capacity, reduce dependence on imported petroleum products, and create economic opportunities.
About The Author
