NNPC To Select Refinery Investors This Month
The Nigerian government is still frantically looking for ways to end fuel crisis in the country.
The government-owned oil company, the Nigerian National Petroleum Corporation, NNPC is now planning to allow private investors to come in to manage its existing refineries, part of efforts to ensure that Nigeria refines enough crude to meet local consumption.
On Tuesday, the company announced that its board will decide on the investors for the three major refineries this month.
The refineries are the ones in Port Harcourt, Kaduna and Warri.
Recall that NNPC launched a bidding process in 2016 to find partners to overhaul the sick refineries that produce very little petrol because of decades of mismanagement.
The three existing refineries could add total capacity of 450,000 barrels per day (bpd) if refurbished. But the project requires investment of $2 billion.
“We are pushing towards the final selection of our financiers and we expect that, when that is done, we’ll get the agreements and present them to our board, meeting this month, to secure their endorsement,” NNPC’s head, Maikanti Baru, said in the statement from the company.
“Once we have the funding, we would start the rehabilitation of the refineries towards a 90% capacity utilisation ... before the end of 2019.”
No details of any potential financiers were however provided.
The government has previously said it was in talks with Chevron, Total and ENI, but Baru said in the statement that NNPC is still open to new refineries and that two investor groups have expressed an interest in building facilities.
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