Nigeria’s quest to reduce importation of refined fuel products may come to reality in the near future as another company has indicated interest to build a 200,000 capacity refinery in the oil rich South-South part of the country. Blooming Faith Petroleum Ltd, a subsidiary of Blooming Faith Global Holdings has said it would build a new refinery with production capacity of 200,000 barrels per day (bpd) in Akwa-Ibom state.
According to the chairman of the company Dr. Robert Yeung “Two major reasons informed the decision of the firm to build a refinery in Nigeria. First, is the need to fill a vacuum created by the failure of the four government-owned refineries to perform to optimal capacity in the country. Second, is the realisation that Nigeria is an investment destination, which must be explored to the fullest,”
Yeung said his team was in talks with the relevant government agencies including the Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPRP) to bring the idea to fruition. He said the company is mainly interest in refining fuel for local consumption.
Director in charge of International Operations, of the Hong kong based oil firm, Mr. John Erigwe who was in the delegation to Nigeria said the company has the financial capability and technical expertise to realise the project.
There had been advice on the federal government to make investment easier in the oil industry as a way of encouraging investors to commit funds to projects that would help the country become an exporter of refined fuel. Chief Executive officer of ‘D’Alphaxristi Ltd and consultants to Blooming Faith in Nigeria said. “this is one of those investments that will have direct impact on the ordinary Nigerian people and the government should give such project immense priority. Investors must be encouraged with incentives and access to government support when required,”
Dangote group of companies is already building an $8 billion complex with a refining capacity of about 400,000 barrels a day in Lagos state.
Nigeria’s four refineries could barely produce 445,000 barrels per day for locally while the country imports about 80 per cent of fuel needs.