KEY POINTS
- The south Korean consortium wants to construct four refineries in Nigeria, each with a processing capacity of 100000 barrels.
- Nigerian government encourages the privatization of the oil and gas sector in order to achieve investment by private companies.
- Modular refineries development and feedstock access will be given first to local refineries.
Nigeria’s oil and gas industry will receive a major boost as South Korean investors prepares to establish four refineries with a capacity of 100,000 barrels per day each.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri made this known during the Crude Oil Refineries Owners Association of Nigeria summit in Lagos.
The minister noted that the federal government has approved and invited South Korean consortium to build the refineries in four locations in Nigeria. The initiative is a step in the government’s plan to foster investment in the midstream and downstream sectors particularly modular and mega refineries.
Enhancing Nigeria’s crude oil refining capacity for the growth of the economy
Senator Lokpobiri also stressed that the Nigerian oil and gas sector should embrace the public private partnership to lure investment into the country. He said the aim of the government is to ensure that Nigeria become a net exporter of petroleum products and aims at making Nigeria the leading oil refining nation in Africa.
In support of local refineries, the Nigerian Upstream Petroleum Regulatory Commission has elaborated guidelines to guarantee transparency and provide local refineries with access to the feedstock of crude oil.
The government has also provided for the tax exemptions of the importation of refinery equipment to foster the import process for investors and guarantee that there is a continuing supply of crude oil locally for the local refiners.
According to Vanguard, This, together with the deregulation, will bring in more investments and employment in the industry. It will also help the country reduce dependence on imported petroleum products and enhance its economic backward linkages.
