NNPC scamper for equity in Dangote refinery, 5 others

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The Nigerian National Petroleum Corporation (NNPC) has said there was no going back on acquiring equity in six private refineries being built in the country.

The corporation said the gesture is in line with a Federal Government policy directive which 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.

The corporation’s spokesman, Kennie Obateru, in a statement said at least six refinery projects have been identified 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.

According to him, “In this regard, the corporation has 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”.

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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.