A consortium of South Korean investors has finalized plans to build four refineries across Nigeria, each with a capacity of 100,000 barrels per day, according to the Federal Government. This development was disclosed by Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), at a summit hosted by the Crude Oil Refineries Owners Association of Nigeria (CORAN) in Lagos.
The initiative aligns with the government’s broader strategy to encourage private investment in the oil and gas sector by creating an open environment for foreign and local investors. Lokpobiri explained that a recent approval was granted to bring the South Korean consortium to Nigeria, with the goal of establishing the refineries at four strategic locations, though he did not disclose the specific sites.
“We have adopted the public-private partnership (PPP) model to unlock investment in the midstream and downstream segments of the oil and gas industry. This will lead to the establishment of more modular and mega refineries,” Lokpobiri said.
This investment is part of Nigeria’s ongoing efforts to strengthen its energy security. The government is open to equity participation in both modular and larger refineries to ensure the country has sufficient refining capacity. This move comes as Nigeria, a major oil producer, seeks to reduce its dependence on imported refined petroleum products.
To further support the growth of local refineries, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has developed and published guidelines to ensure domestic crude oil supply obligations. These guidelines are aimed at guaranteeing a steady supply of feedstock for local refineries, ensuring transparency, and enhancing the efficiency of crude oil allocations.
Lokpobiri emphasized that the government will continue to push for full deregulation of the downstream oil sector while simultaneously creating frameworks to cushion the impact on lower-income citizens. “We will ensure that 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,” he stated.
The Nigerian government is also facilitating tax exemptions and other incentives to make the importation of refinery equipment more cost-effective. This is part of its vision to make Nigeria a self-sufficient petroleum producer and a hub for refining in Africa.
In his address, Lokpobiri revealed that the Petroleum Industry Act (PIA) created the National Gas Infrastructure Fund, which is sourced from the sale of petroleum products domestically. He suggested that a portion of this fund could be directed toward supporting infrastructural development in the refinery sector, much like how it supports the gas value chain.
Additionally, Lokpobiri highlighted that the Ministry of Petroleum Resources is working with the Petroleum Technology Development Fund (PTDF) and the Nigerian Content Development and Monitoring Board (NCDMB) to promote partnerships with international institutions. These collaborations are expected to enhance skills transfer, manpower development, and investment in research and innovation to advance the country’s refining capabilities.
In a bid to address crude oil theft and illegal refining, Lokpobiri noted that the ministry had established an international emergency committee focused on developing local solutions for refining within the country.
As part of a broader workforce development strategy, the minister disclosed plans to establish an apprenticeship program in collaboration with existing refineries to build local expertise in refinery operations.
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