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Nigerian Government Confirms Plan By South Korean Investors To Build Four New Refineries

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October 9, 2024

The refineries are planned to be built in different locations of the country.

 

The Nigerian government has announced the plans of consortium of investors from South Korea to build four 100,000-barrel capacity refineries.

 

The refineries are planned to be built in different locations of the country.

 

This was revealed by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, at the maiden edition of a summit organised by the Crude Oil Refineries Owners Association of Nigeria in Lagos.

 

 

The Nigerian government noted that it is encouraging investors to build refineries by providing an open environment for all.

 

 

Although the government did not reveal the name of the consortium, the minister said, “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.”

 

 

“We have adopted the public-private partnership model to unlock investment in the midstream and downstream segments of the oil and gas sector, which will lead to the establishment of more modular and mega refineries,” he narrated.

 

 

 

“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 explained.

 

 

The government also stated the deregulation of the downstream sector is 100 percent.

 

"We will ensure the deregulation of the downstream sector is 100 per cent and put in place a necessary framework that will ease the impact on the poor masses.

 

“The ministry has facilitated easier access to existing tax and other exemptions on refinery equipment importation, which is part of our plan to make Nigeria self-sufficient for petroleum producers and become Africa’s petroleum refining hub.”

 

 

“In effect, we will initiate the review of the PIA to enable this. Meanwhile, CORAN as a body should take up the campaign. Through the Petroleum Technology Development Fund and the Nigerian Content Development and Monitoring Board, we are prioritising partnerships with international institutions in knowledge transfer for manpower in refinery operations, and investment in research and development, to support technological advancements and innovation in the refining sector.

 

“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.