A consortium of South Korean investors has finalized plans to establish four refineries in Nigeria, each with a capacity to produce 100,000 barrels of oil per day, the Federal Government revealed on Tuesday. This development is part of a broader effort to expand the nation’s refining capacity and reduce dependence on imported petroleum products.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the announcement at the inaugural summit of the Crude Oil Refineries Owners Association of Nigeria (CORAN) held in Lagos. He noted that the government has been fostering a conducive environment for investors in the oil and gas sector, with the goal of attracting significant investments into refinery construction.
“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,” Lokpobiri stated.
While the specific locations and details of the consortium were not disclosed, the minister emphasized that the public-private partnership model was being adopted to drive investment in Nigeria’s midstream and downstream oil sectors. This strategy is expected to lead to the development of both modular and mega refineries across the country, contributing to the nation’s energy security.
Lokpobiri also highlighted the government’s openness to equity investments in modular refineries and other emerging refinery projects, ensuring that Nigeria can meet its domestic energy needs while also positioning itself as a refining hub for Africa. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has published guidelines to ensure transparency in crude supply to local refineries, which will help secure steady feedstock for refining operations.
The minister further assured that the government is committed to full deregulation of the downstream sector and is working on measures to ease the economic impact of such changes on ordinary Nigerians. He added that tax exemptions on refinery equipment imports have been made more accessible to investors, as part of efforts to make Nigeria self-sufficient in petroleum production.
Lokpobiri also mentioned that the Petroleum Industry Act (PIA) may be reviewed to allow the National Gas Infrastructure Fund to support the development of refinery infrastructure. He urged CORAN to advocate for this adjustment, while also pointing to existing partnerships with international institutions aimed at knowledge transfer, research, and innovation in refining technology.
In a bid to combat crude oil theft and illegal refining, Lokpobiri disclosed that the ministry had set up an international emergency committee tasked with finding local solutions to improve in-country refining. He also announced plans to establish an apprenticeship program to train experts in refinery operations in collaboration with existing refineries, further boosting the country’s refining capacity.
