The Federal Government of Nigeria has announced plans by a consortium of South Korean investors to establish four 100,000-barrel capacity refineries at various locations across the country. This was revealed by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during the inaugural summit of the Crude Oil Refineries Owners Association of Nigeria (CORAN) in Lagos.
Lokpobiri stated that the government is committed to creating an open environment for investors, encouraging them to build refineries. He noted that the recent approval to invite the consortium aligns with the government’s strategy to increase refinery capacity and boost energy security through public-private partnerships.
The minister highlighted that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had issued domestic crude supply obligation guidelines to ensure local refineries have access to feedstock. Additionally, the government is prioritizing policies that support local refinery owners, including concessions and deregulation of the downstream sector to facilitate ease of operations.
Lokpobiri also mentioned ongoing efforts to support refinery infrastructure through potential adjustments to the Petroleum Industry Act (PIA) and partnerships with international institutions for knowledge transfer and technological advancement in the refining sector. An apprenticeship program will also be developed to train experts in refinery operations.
Moreover, to tackle crude oil theft and illegal refining, the ministry has set up an international emergency committee aimed at home-grown solutions for refining within Nigeria.
