A consortium of South Korean investors is set to construct four refineries, each with a capacity of 100,000 barrels per day, in different regions of Nigeria.
This announcement was made by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during the inaugural summit of the Crude Oil Refineries Owners Association of Nigeria, held in Lagos on Tuesday.
Lokpobiri stated that the Federal Government is dedicated to attracting refinery investments by fostering an open and conducive environment for investors.
He stressed the crucial role of public-private partnerships in advancing the development of Nigeria’s midstream and downstream oil and gas sectors.
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While he confirmed the government’s approval for the South Korean consortium to build the refineries, he did not reveal the name of the group.
“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.
He explained that the Federal Government’s approach included equity investment in both modular and larger refineries, aimed at ensuring energy security for the nation. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has also 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,” he added.
Addressing the potential economic impact, Lokpobiri said, “We will ensure the deregulation of the downstream sector is 100 percent and put in place a necessary framework that will ease the impact on the poor masses.”
He further highlighted efforts to streamline access to tax exemptions for importing refinery equipment, as part of the broader strategy to achieve self-sufficiency in petroleum refining in Nigeria.
In his comments, he suggested that the Petroleum Industry Act (PIA) could be amended to allocate a portion of the National Gas Infrastructure Fund to support the development of refinery-related infrastructure.
Lokpobiri also noted that the ministry is looking 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,” he disclosed.
To combat crude oil theft and illegal refining activities, Lokpobiri revealed that an international emergency committee has been established to find home-grown solutions for refining within the country.
New Price Per Litre For Petrol Emerge As Independent Marketers Adjust To Dangote Refinery’s Price
Independent oil marketers in the Federal Capital Territory on Wednesday adjusted the pump price of petrol, reflecting the purchase price from the Dangote Refinery and Petrochemical Company.
Reports show that many filling stations have raised the price of petrol to an average of N1,200 per liter.
This price change comes after the full deregulation of the downstream sector of the petroleum industry, which ended the Nigerian National Petroleum Company Ltd (NNPC)’s exclusive purchase agreement with Dangote Refinery.
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The deregulation now allows other marketers to buy petrol directly from the refinery.
As a result, the NNPC is no longer the sole buyer, giving marketers the flexibility to negotiate prices directly with Dangote Refinery.
This aligns with current practices for fully deregulated products, where refineries can sell directly to marketers.
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