A consortium of investors from South Korea has finalized a deal with the Nigerian government to construct four new refineries, each with a production capacity of 100,000 barrels per day. The announcement was made by the Minister of State for Petroleum Resources, Heineken Lokpobiri, during the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
Minister Lokpobiri emphasized the Nigerian government’s commitment to attracting foreign investment, stating, “We encourage investors to build limited refineries by providing an open environment.” He noted that the recent approval for the South Korean consortium is a testament to Nigeria’s readiness to welcome international partners in the oil industry.
The government is adopting a public-private partnership model to enhance investment in the midstream and downstream sectors of the oil and gas industry. This approach aims to establish both modular and mega refineries across the nation, enhancing Nigeria’s refining capacity and contributing to energy security.
“The current administration is open to equity investment in modular refineries and other upcoming projects,” Lokpobiri added. He also highlighted the Nigerian Upstream Petroleum Regulatory Commission’s new guidelines for domestic crude supply, designed to ensure transparency and accessibility for local refineries.
Furthermore, the minister reaffirmed the government’s commitment to collaborating with stakeholders to implement recommendations from the Modular Refinery Committee, which includes special concessions for local refinery owners to secure consistent access to feedstock.
This initiative marks a crucial step in Nigeria’s efforts to boost its refining capabilities and reduce reliance on imported petroleum products, paving the way for enhanced energy security and economic growth.
