Everything We Know About Nigeria’s New Oil Deal With South Korea
The Nigerian National Petroleum Company Limited (NNPC) has finalized a deal with Daewoo Group of South Korea to rehabilitate the Kaduna Refinery with hopes to facilitate the production of refined fuel products in Nigeria.
The spokesperson noted that the president of Nigeria, President Muhammadu Buhari, approved the signing which took place on the sidelines of the 2022 World Bio Summit on Thursday in Seoul, South Korea.
Nigeria currently imports its finished fuel products, despite having several refineries. The Kaduna refinery can produce 110,000 barrels per day and stands as one of the four dormant refineries in the government’s possession.
With an investment of up to $586 million for the rehabilitation, Nigeria expects the plant to start production by December.
“Daewoo Group has massive investments in the automobile, maritime, and other sectors of our economy.” He said
“I am also aware that Daewoo is currently engaged in the execution of the NLNG train seven project and also constructing sea-going LPG vessels for NNPC and her partners.” He concluded.
What you should know
- In March this year, the Federal Executive Council approved the sum of $1.5 billion for the immediate rehabilitation of the Port Harcourt refinery.
- The rehabilitation which commenced around May 2021 is being executed by Tecnimont SPA, an Italian company, and would be completed in 3 phases of 18, 24, and 44 months.
- Nigeria has 4 refineries in Kaduna, Warri, and 2 in Port Harcourt, but all have struggled to function optimally as the country continues to import petroleum products.
- The rehabilitation is expected to turn around the refineries and set them up to meet the country’s oil demands.
- In June, the Managing Director of NNPC, the national oil company, Mr. Mele Kyari, said the rehabilitation of the refineries, in conjunction with private efforts such as the Dangote Refinery, will transform Nigeria into a hub of petroleum products and supply.