South Korea is set to build four refineries in Nigeria. At completion, the oil outfits will produce 400,000 barrels per day, the Federal Government has said.
The plants are expected to generate no fewer that 500,000 direct and indirect workers, Nigerian authority said.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who spoke on Tuesday said the refineries will be located across the country.
He spoke at the maiden edition of a summit organised by the Crude Oil Refineries Owners Association of Nigeria in Lagos.
He said the Federal Government is drawing investors to Nigeria by providing condusive environment.
Lokpobiri said, “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 South Koreans are expected to begin the project soon.
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 narrated.
He said the Federal Government is open to equity investment in modular refineries and other upcoming refineries.
He said the government took the 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.
The Minister 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.
He said the government 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 ministry has facilitated easier access to existing tax and other exemptions on refinery equipment importation, which is part of our plan to make Nigeria self-sufficient for petroleum producers and become Africa’s petroleum refining hub.”
Lokpobiri said, “In effect, we will initiate the review of the PIA to enable this. Meanwhile, CORAN as a body should take up the campaign. Through the Petroleum Technology Development Fund and the Nigerian Content Development and Monitoring Board, we are prioritising partnerships with international institutions in knowledge transfer for manpower in refinery operations, and investment in research and development, to support technological advancements and innovation in the refining sector.
“In no distant time, we intend to create the apprenticeship programme in collaboration with existing refineries to develop expertise in our refinery operations.”
