South Korean Consortium to Establish Four Refineries in Nigeria

A consortium of South Korean investors is set to construct four 100,000-barrel capacity refineries in Nigeria, the Federal Government announced today.

Minister of State for Petroleum Resources, Heineken Lokpobiri, revealed the plans at the inaugural summit of the Crude Oil Refineries Owners Association of Nigeria held in Lagos.

Lokpobiri emphasized the government’s commitment to fostering an inviting environment for foreign investment in the oil sector.

“We encourage investors to build limited refineries by providing an open environment. A recent approval was granted to invite a consortium of investors from South Korea, which intends to establish four 100,000-barrel model refineries in different locations,” he stated.

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He further explained that the public-private partnership model is being adopted to attract investment in both the midstream and downstream sectors, aiming to facilitate the development of modular and mega refineries.

“This approach will ensure energy security and promote local refining capabilities,” Lokpobiri noted.

In addition, the Minister highlighted initiatives to improve the transparency of the oil industry, including the recent domestic crude supply obligation guidelines developed by the Nigerian Upstream Petroleum Regulatory Commission.

He reassured that the government is prioritizing local refineries by providing necessary concessions and guarantees for feedstock.

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“Our goal is to fully deregulate the downstream sector and implement frameworks that mitigate the impact on the poor,” Lokpobiri asserted.

He also mentioned ongoing efforts to simplify tax exemptions on refinery equipment importation, positioning Nigeria as a potential petroleum refining hub in Africa.