Oil and Gas

NNPC GMD says Nigeria in talks to give up majority stakes in refineries

The Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Mr Mele Kyari has revealed that the Federal Government is holding talks with investors to give up majority stakes in all four of its moribund oil refineries.

He made this disclosure during an interview with Channels TV.

He said that discussions were taking place on an operating model in which the state oil company NNPC or the government would be a minority shareholder in the assets.

“It means there will be more scrutiny of shareholders and also becoming more efficient to operate. That conversation is on the table,”
He did not specify how the government planned to transfer ownership, or to whom.

The refineries have for years worked only sporadically due to chronic underinvestment.

NNPC said in April that it had shut them all down to secure funding for their refurbishment, and would no longer manage them when they reopened.

Mr Kyari also disclosed that plans are on the way to rehabilitate the four major refineries to maximum capacity.

According to him, this plan is expected to place Nigeria as the world’s biggest exporter of oil in the next three years

The four refineries are located at three sites in Kaduna, Warri and Port Harcourt. Kyari said the pipelines that feed them with crude oil were badly damaged.

The refineries processed almost no crude in the 13 months to end June, according to NNPC data last month, even though their operating costs totalled $367 million.

About the author

Joseph Chukwuma Oputa

Joseph Chukwuma Oputa is the Managing Editor of Maslow Businessnews and Physicians News publications published by Maslow Business News Publications, Lagos, Nigeria.

Joseph Oputa is a proud Alumnus of the prestigious Nigerian Institute of Journalism, Lagos and Federal Polytechnic, Bida, Niger State.

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