“South Korean Investors Set to Build Four Refineries in Nigeria,” Says FG

The Federal Government of Nigeria has announced that a consortium of South Korean investors is moving forward with plans to build four refineries, each with a capacity of 100,000 barrels per day, at various locations across the country. This 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.

Lokpobiri emphasized the government’s commitment to fostering an investment-friendly environment, stating, “We encourage investors to build limited refineries by providing an open environment.” He revealed that the consortium, whose name was not disclosed, has recently received government approval to initiate this significant project.

In a bid to enhance investment in Nigeria’s oil and gas sector, the government has adopted a public-private partnership model aimed at boosting both modular and mega refinery developments. Lokpobiri expressed confidence that these initiatives would contribute positively to the nation’s energy security, highlighting that the government is open to equity investments in new and existing refineries.

To support local refineries, the Nigerian Upstream Petroleum Regulatory Commission has established domestic crude supply obligation guidelines to ensure transparency and facilitate access to feedstock. “We will prioritize and collaborate with stakeholders to ensure effective implementation of recommendations from the Modular Refinery Committee, providing special concessions to local refinery owners,” he noted.

Further plans include the full deregulation of the downstream sector and the implementation of a framework to mitigate the impact of changes on the population. The ministry is also making strides to improve access to tax exemptions on refinery equipment imports, aiming to position Nigeria as Africa’s petroleum refining hub.

Lokpobiri mentioned the importance of utilizing the National Gas Infrastructure Fund to support infrastructural development in the refining sector. He proposed a review of the Petroleum Industry Act (PIA) to allocate funds for refinery infrastructure.

Additionally, he announced plans for an apprenticeship program in collaboration with existing refineries to cultivate expertise in refinery operations. The government is also establishing an international emergency committee focused on developing home-grown solutions to combat crude oil theft and illegal refining in the country.