A consortium of South Korean investors is gearing up to build four refineries, each with a capacity of 100,000 barrels per day, across different locations in Nigeria, as announced by the Federal Government on Tuesday. The Minister of State for Petroleum Resources, Heineken Lokpobiri, shared this exciting development during the inaugural summit hosted by the Crude Oil Refineries Owners Association of Nigeria in Lagos.

Lokpobiri emphasized the government’s commitment to creating a conducive environment for investments in the oil and gas sector. He revealed that recent approvals have been granted to invite the South Korean consortium, although he did not disclose its name.

“We actively encourage the establishment of modular refineries by maintaining an open environment for investment,” Lokpobiri stated. “The recent approval to welcome a South Korean consortium to Nigeria will pave the way for these four refineries.”

Highlighting the importance of public-private partnerships, the minister noted that this approach will attract investment in both the midstream and downstream segments of the oil and gas industry, facilitating the growth of both modular and large-scale refineries.

ALSO READ: Nigeria Targets 4 Million Barrels of Oil and 10 Billion Cubic Feet of Gas Daily by 2030

The minister expressed confidence that these initiatives would significantly enhance energy security in Nigeria. He pointed out that the Nigerian Upstream Petroleum Regulatory Commission has published guidelines to ensure transparency in the oil sector, particularly regarding access to feedstock for local refineries.

In his remarks, Lokpobiri also addressed the need for deregulation in the downstream sector, aiming for a 100% deregulated environment that supports the population’s needs. He added that the ministry has made strides to simplify access to tax incentives and exemptions for importing refinery equipment, which is part of a broader strategy to transform Nigeria into a self-sufficient petroleum producer and establish it as Africa’s refining hub.

He further mentioned that the Petroleum Industry Act (PIA) has established both the petroleum ministry and the National Gas Infrastructure Fund, which would ideally support infrastructure development for refineries. Lokpobiri indicated plans to review the PIA to facilitate this funding.

Additionally, he urged the Crude Oil Refineries Owners Association of Nigeria (CORAN) to advocate for these changes. Through the Petroleum Technology Development Fund and the Nigerian Content Development and Monitoring Board, the government aims to foster partnerships with international institutions for knowledge transfer and investment in technological innovation within the refining sector.

In a bid to combat crude oil theft and illegal refining activities, Lokpobiri announced the formation of an international emergency committee to develop home-grown solutions to refining challenges within the country.