South Korean Investors to Build Four Refineries in Nigeria – FG

The Federal Government of Nigeria has announced that a consortium of South Korean investors is set to establish four new refineries in Nigeria, each with a production capacity of 100,000 barrels. This development was revealed by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during the inaugural summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.

Minister Lokpobiri highlighted the government’s efforts to foster a supportive environment for investors interested in building refineries, emphasizing the recent approval to invite the unnamed South Korean consortium to Nigeria. The goal is to enhance the country’s refining capacity through public-private partnerships, paving the way for both modular and large-scale refineries.

Lokpobiri stated, “We have adopted the public-private partnership model to unlock investments in the midstream and downstream segments of the oil and gas sector, aiming to develop more modular and mega refineries.”

He further mentioned that the Nigerian Upstream Petroleum Regulatory Commission has issued domestic crude supply obligation guidelines to ensure transparency and a consistent supply of feedstock to local refineries. This initiative is designed to support the growth of refineries and promote energy security in Nigeria.

The Minister also emphasized the Federal Government’s focus on deregulating the downstream sector entirely and creating frameworks that will mitigate the effects of such changes on the general population. As part of these efforts, the ministry has streamlined access to tax incentives and exemptions on refinery equipment imports, aiming to position Nigeria as Africa’s hub for petroleum refining.

Additionally, Lokpobiri disclosed plans to review the Petroleum Industry Act (PIA) to allocate a portion of the National Gas Infrastructure Fund towards developing refinery infrastructure, similar to investments in the gas sector. He called on industry bodies like the Crude Oil Refineries Owners Association of Nigeria (CORAN) to champion these initiatives.

To boost local expertise in refinery operations, the minister revealed plans to launch apprenticeship programs in partnership with existing refineries. The Federal Government is also engaging with international institutions to facilitate knowledge transfer, innovation, and technological advancements within Nigeria’s refining sector.

In a bid to curb crude oil theft and illegal refining, Lokpobiri announced the formation of an international emergency committee focused on developing home-grown solutions for refining oil within the country.