NNPC seeks $6 billion investment to boost capacities of local refineries to 700,000 barrels

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A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. REUTERS/Stringer/File Photo

The Nigerian National Petroleum Corporation, NNPC, says it is working to upgrade the combined capacity of its four refineries in Warri, Kaduna and Port Harcourt from the present 445,000 to 700,000 barrels per day under the planned repair programme for the plants.

The repair work on the refineries, expected to commence after the selection of the contractors by September this year, is expected to put the them in a position to attain optimum performance.

NNPC’s Group Managing Director, Dr. Maikanti Baru, disclosed this as he spoke to investors of multi-billion dollar investment opportunities in the Nigerian oil and gas sector at the just-concluded Offshore Technology Conference, OTC, in Houston, Texas, United States.

Represented by the Chief Operating Officer, Gas and Power at the NNPC, Engr. Saidu Mohammed, Baru, said the opportunities, if taken up by investors, would place NNPC on the path of profitability.

“By coming here to the OTC, we are not only looking out for potential investors, we are looking at partners that will deploy their cutting-edge technology that will enable us achieve the goals we have set up for ourselves,” he told a gathering of investors.

These opportunities, according to Baru, could be divided into five areas across the oil and gas value chain and include upstream oil and gas development, gas infrastructure and power plants, refineries, downstream as well as ventures and new businesses.

He said within the upstream segment, NNPC plans to increase its oil reserve base to 40 billion oil barrels reserves by 2020, adding that based on its upstream growth plan, NNPC would raise about US$13-US$16.5 billion over the next five years.

“For the refineries, our plan is to rehabilitate, and revamp our existing four refineries. On successful rehabilitation and revamp, our plan is to upgrade their combined name plate capacity from 445,000 barrels per day to 700,000 barrels per day within the next few years.

“We would require investments of between $5-$6 billion,” he noted.

Explaining that the NNPC was mindful of the need to construct new refineries, Baru said the big picture was to transit from a net crude oil exporter to a net petroleum product exporter as more value and opportunities abound in the latter.

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