Federal Government of Nigeria said that plans are underway to revive the three oil refineries by handing them over to private investors, 26 of whom have already indicated their interest.
The Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu, said on Tuesday Kachikwu said when privatised the refineries, would produce 450,000 barrels of refine petroleum products per day. He however noted that revamping the three refineries will require an investment of over $2 billion.
The minister also said the Dangote refinery, with capacity to process 650,000 bpd of oil being built in Nigeria is due to come onstream by the end of 2019. “We are almost at a threshold of finalising the process of selection,” he said, adding that government could announce the successful companies by January or February 2018.
“That should be enough to meet local needs,” Kachikwu told an oil and gas conference in Cape Town, South Africa.
He told reporters that Nigeria aims to lift oil output in January to 1.8 million bpd from about 1.6 million to 1.7 million bpd now, but would not breach a ceiling agreed with the Organization of the Petroleum Exporting Countries.
“If we get to 1.8 (mpd), then we need to say ‘hey, close off the taps, because we need to comply,” he said.
He also said oil prices were now encouraging but OPEC had not ruled out further cuts to shore up the market.
The government had previously said it was in talks with Chevron, Total and ENI on the refineries rehabilitation.