A consortium of South Korean investors has finalized plans to construct four refineries, each with a capacity of 100,000 barrels, at various locations across the country. The announcement was made on Tuesday by Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources, during the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
Lokpobiri emphasized the Nigerian government’s commitment to creating an enabling environment for investors interested in building refineries. He revealed that a recent approval was granted for the South Korean consortium to begin establishing these refineries, although he did not disclose their name.
“We encourage investors to build limited refineries by providing an open environment,” Lokpobiri stated. He highlighted the adoption of a public-private partnership model to stimulate investment in both the midstream and downstream sectors of the oil and gas industry, ultimately leading to the establishment of additional modular and mega refineries.
The minister underscored the importance of these initiatives in ensuring energy security for Nigeria. He mentioned that the Nigerian Upstream Petroleum Regulatory Commission has introduced domestic crude supply obligation guidelines aimed at enhancing transparency within the oil industry and facilitating access to feedstock for local refineries.
Additionally, Lokpobiri noted that the government prioritizes working with stakeholders to implement recommendations from the Modular Refinery Committee, which includes providing special concessions to local refinery owners to guarantee them a steady supply of feedstock.
He also spoke about the ministry’s plans for complete deregulation of the downstream sector, ensuring the impact on the general population is minimized. Efforts are underway to facilitate easier access to tax exemptions and other incentives for importing refinery equipment, with the goal of making Nigeria self-sufficient in petroleum production and positioning it as Africa’s refining hub.
While acknowledging the provisions made by the Petroleum Industry Act (PIA) to support the sector, Lokpobiri indicated that a portion of the National Gas Infrastructure Fund could be utilized for refinery infrastructure development, similar to initiatives in the gas value chain. He also mentioned ongoing partnerships with international institutions aimed at enhancing knowledge transfer and supporting technological advancements in refinery operations.
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