Nigeria Unable To Secure $1bn Offshore Funding For Refineries

Nigeria Unable To Secure $1bn Offshore Funding For Refineries

The inability of the Federal Government to secure about $1 billion in offshore financing for the rehabilitation of the three refineries in Port Harcourt, Warri and Kaduna may have compelled it to opt for a new financing model, The Sun reports.

Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, who disclosed the latest strategy at the National Association of Energy Correspondents of Nigeria (NAEC) 2017 conference said the actual rehabilitation work would be carried out by the original refinery builders (ORBs), with financiers funding the repair work, and that a joint management team comprising ORBs, financiers and NNPC, would steer the operation of the refineries over a period of 5-6years to bleed incremental liquids for recouping of investments.

Giving a shocking revelation, the Minister said of about 40-50 licenses issued by the Department of Petroleum Resources (DPR) for the establishment of modular refineries, only two (2) have shown substantial progress. On the concept for co-location of refineries, he said the country has moved from its initial model, which involved co-locating brownfield refineries with the existing refineries to the co-location of brand new (greenfield) refineries, explaining that the overall concept still remains the same.

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