Nigeria’s state owned oil company, Nigerian National Petroleum Corporation (NNPC) may allow private investors to install two refineries on two of its sites.
The country’s existing 445,000 barrel per day (bpd) refining system operates well below capacity due to mismanagement and lack of investment, forcing the corporation to import the bulk of the country’s gasoline. Recently in a statement, it was considering plans to establish a 100,000 barrel per day brownfield refinery at its Port Harcourt and Warri sites in collaboration with private sector investors.
According to the corporation, the strategy was “aimed at getting private sector investors to bring in brownfield refineries so that they can share facilities”.
NNPC said investors had already begun relocating a refinery from Turkey to Nigeria to be installed near the state oil company’s Port Harcourt refinery. It did not name any companies or provide a timeline.
The corporation sought new investment for years to reduce the reliance on imported oil products. In 2017, Forte Oil, a major player in the downstream sector, said it was in talks to form a strategic partnership for local refining of petroleum products to reduce importation.