S’Korean investors set to build four 100,000-barrel refineries in Nigeria

A group of investors from South Korea is set to build four 100,000-barrel capacity refineries in four different locations in Nigeria.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this on Tuesday at the maiden edition of a summit organised by the Crude Oil Refineries Owners Association of Nigeria in Lagos.

Lokpobiri who disclosed that the FG had granted an approval recently to invite the consortium, did not disclose its name.

The minister, however, stated that the Federal Government had been providing conducive environments to encourage investors to build refineries in the country.

“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 said.

“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 he added.

According to him, the development would generate positive results because the Federal Government is open to equity investment in modular refineries and other upcoming refineries as a step to ensure energy security.

“The Nigerian Upstream Petroleum Regulatory Commission has developed and published the domestic crude supply obligation guidelines to ensure transparency in the oil industry and ensure access to feedstock by our local refineries,” Lokpobiri said.

“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.

“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 minister said.

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