NNPC Targets Six Private Refineries For Equity Participation

The Nigerian National Petroleum Corporation has said that it will acquire equity in six private refineries with capacity above 50,000 barrels per day.

Five of such refineries are at the development stage with the Dangote Refinery being the largest of them

The corporation said it is compelled to do so owing to a federal government policy that mandates it to participate in such.

Plans by the Corporation to acquire 25 percent equity in Dangote Refinery has elicited reactions from the members of the public who doubted the federal government sincerity.

The Corporation’s spokesperson,. Kennie Obateru, explained that NNPC as the National Oil Company of Nigeria primarily has a dual role of providing stewardship for the nation’s hydrocarbon resources and adding value to the resources for the benefit of all Nigerians and other stakeholders.

These roles enable it to achieve the twin objectives of providing energy security for the country and stimulating the nation’s economic development and growth.

He said that 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 oil refining sector is one of such segments where NNPC is revisiting its strategy in order to strengthen domestic refining capacity and guarantee National Energy Security. The new vision is to grow domestic refining capacity, improve petroleum products supply from our local refineries and become a net exporter of petroleum products.

The Corporation assures that the move to seek equity participation in the private refineries would not undercut its commitment to the rehabilitation of its own refineries and strengthen the domestic refining sector, stressing that the overall goal is to boost the nation’s refining capacity with a view to becoming a net exporter of petroleum products in the soonest possible time and boosting the nation’s economy.