NNPC to acquire equity in 6 private refineries for national energy security

*The Nigerian National Petroleum Corporation says it is considering equity participation in a number of private refineries in the country in order to strengthen domestic refining capacity and guarantee national energy security

Isola Moses | ConsumerConnect

In line with a Federal Government’s policy directive in oil and gas industry, the Nigerian National Petroleum Corporation (NNPC) has disclosed that it is currently considering equity participation in a number of private refineries in the country.

The state oil firm stated that the policy stipulates the mandatory participation of the Corporation in any privately-owned refinery that exceeds 50,000 barrels per day capacity in keeping with its statutory role of safeguarding national energy security.

Oil and gas refinery 

Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division of NNPC in a statement Monday, May 31 said the Corporation had identified at least six refinery projects in which it intends to seek equity participation, five of them are at the development stage with the Dangote Refinery being the largest of them.

The statement further explained that the NNPC as the National Oil Company of Nigeria primarily, has a dual role of providing stewardship for the country’s hydrocarbon resources and adding value to the resources for the benefit of all Nigerian consumers and other stakeholders.

Obateru noted these roles enable the Corporation to achieve the twin objectives of providing energy security for the country, and stimulating the national economic growth and development.

NNPC’s strategic objective to ensure energy security and stimulate economic growth with limited resources requires it to consider strategic partnerships with competent investors in sectors of the oil and gas value chain, especially where it currently operates on a sole risk basis, the statement said.

The NNPC Spokesman further stressed the oil-refining sector is one of such segments where the Corporation is revisiting its strategy in order to strengthen domestic refining capacity and guarantee national energy security.

The new vision, Obateru added, is to grow domestic refining capacity, improve petroleum products supply from our local refineries and become a net exporter of petroleum products.

The Corporation, therefore, assures the stakeholders, that the move to seek equity participation in the private refineries will not undercut its commitment to the rehabilitation of its own refineries and strengthen the domestic refining sector.

The statement stressed that the overall goal is to boost Nigeria’s refining capacity with a view to becoming a net exporter of petroleum products in the soonest possible time while boosting the country’s economy.

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