August 29, 2018 / 12:37 PM / 20 days ago

Nigeria's NNPC to conduct feasibility study for oil refinery

LAGOS, Aug 29 (Reuters) - Nigeria’s state oil company plans to conduct a feasibility study for setting up two condensate refineries with a total capacity of 200,000 barrels per day (bpd), it said on Wednesday.

The Nigerian National Petroleum Corporation (NNPC) said in a statement it planned to set up the condensate refineries in partnership with private partners in the southern states of Delta and Imo.

Maikanti Baru, NNPC’s managing director, said the commission had received bids from companies willing to conduct the feasibility study for the NNPC.

Nigeria currently has a 445,000 bpd refining system which operates well below capacity due to mismanagement and lack of investment, forcing the NNPC to import the bulk of the country’s gasoline.

NNPC earlier this month said it was considering plans to establish a 100,000 bpd brownfield refinery at its Port Harcourt and Warri sites in collaboration with private sector investors.

Baru said the condensate project was part of strategies aimed at eliminating imports of petroleum products and guaranteeing energy security in Nigeria.

Africa’s richest man, Aliko Dangote, is building a 650,000 bpd refinery near Lagos, which would meet Nigeria’s current demand and also for export.

NNPC will seek partners to invest in the project, Baru said, adding the initiative would increase NNPC’s refining capacity to 645,000 bpd. The state oil company could cede control in the project, he said.

Legislation aimed at overhauling Nigeria’s oil industry will, when implemented, mean the NNPC will be governed by company law, which will ensure stability and transparency, Baru said.

However, sources familiar with the matter told Reuters the presidency had rebuffed the landmark oil industry reform bill in its current form and sent it back to parliament over sections that deal with management of the NNPC. (Reporting by Chijioke Ohuocha; Editing by Mark Potter)

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