Nigeria’s State Oil Company Considers Refinery Partnerships

NNPC said investors had already begun relocating a refinery from Turkey to Nigeria to be installed near the state oil company’s Port Harcourt refinery.

SEATTLE (Oil Monster): Nigeria’s state oil company could allow private investors to install two refineries on two of its sites, it said on Tuesday.

The country’s existing 445,000 barrel per day (bpd) refining system operates well below capacity due to mismanagement and lack of investment, forcing the Nigerian National Petroleum Corporation (NNPC) to import the bulk of the country’s gasoline.

NNPC said in a statement it was considering plans to establish a 100,000 barrel per day brownfield refinery at its Port Harcourt and Warri sites in collaboration with private sector investors.

The company said its strategy was “aimed at getting private sector investors to bring in brownfield refineries so that they can share facilities”.

NNPC said investors had already begun relocating a refinery from Turkey to Nigeria to be installed near the state oil company’s Port Harcourt refinery. It did not name any companies or provide a timeline.

A spokesman for the state oil company did not immediately respond to a phone call, text message and email seeking comment.

NNPC has sought new investment for years to reduce the reliance on imported oil products. Last year Nigeria’s Forte Oil said it was in talks to form a strategic partnership for local refining of petroleum products.

Courtesy: www.reuters.com