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In a move to bolster its dilapidated oil production infrastructure Nigeria is looking to partner with South Korea to build several oil refineries across the country.
For decades now, the country has been completely reliant on imported petroleum products. However, there seems to be paradigm shift with the emergence of the Dangote refinery.
Nigeria plans to partner with South Korea to build several refineries across the country.
The deal involves a consortium of investors from South Korea building four refineries with a 100 000-barrel production capacity each. Nigeria aims to shift from reliance on imported petroleum products to boosting its domestic oil production infrastructure.
A consortium of investors from South Korea, as reported by the Nigerian newspaper, The Punch, recently finalised a deal with the Nigerian government to build four refineries.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the announcement on Tuesday, noting that each refinery would have a minimum capacity of 100 000-barrel production per day.
He detailed the plan at the maiden edition of a summit organised by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
The minister during his address, noted that the Nigerian government, which he has said on several occasions that it is open for business, is encouraging investors to put their monies into establishing refineries in Nigeria.
“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,” the minister stated.
“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 added.
The current administration is open to equity investment in modular refineries and other forthcoming refineries as a move to secure energy security, the oil minister revealed. – Business Insider Africa
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