The Nigeria National Petroleum Corporation (NNPC) may have advanced talks with two consortiums that include top traders, energy majors and oil services companies to revamp its dilapidated refineries.
The move is aimed at helping Nigeria save billions of dollars on fuel imports. Four banking and trading sources said the groups would be paid via the offtake of refined products rather than cash, putting the onus on them to revive the refineries and keep them running smoothly to ensure their investments earn a return.
The first group comprised the world’s largest oil trader, Vitol, with Italy’s Saipem, U.S firm General Electric and Nigerian traders Sahara Group and MRS Oil Nigeria Plc and would refurbish Warri refinery in Delta State and the refinery in Kaduna, the sources said.
A second consortium include global commodities trader Trafigura, Italian oil major Eni, Spanish refiner Cepsa and Nigeria’s Oando. This group would carry out repairs at Port Harcourt, which consists of two refining plants, the sources said.
Minister of Petroleum Resources, Dr. Ibe Kachikwu had earlier said that the private investors in the refineries would be announced in March.