The Nigerian National Petroleum Company Ltd (NNPCL) has announced the signing of an agreement with African Refinery for a share subscription agreement with Port-Harcourt Refinery, which will enable the parties to run a 100,000bpd refinery within the Port-Harcourt Refinery complex.
This disclosure was contained in a press statement on the company’s official X handle, which detailed the terms and conditions of the deal.
According to the NNPCL, when operational, the new refinery will produce PMS, AGO, ATK, LPG for both the local and international markets.
The company stated: “NNPC Ltd.’s moves to boost local refining capacity witnessed a boost today with the signing of share subscription agreement between NNPC Limited and African Refinery Port Harcourt Limited for the co-location of a 100,000bpd capacity refinery within the PHRC complex.
“The signing of the agreement is a significant step towards setting in motion the process of building a new refinery which, when fully operational, will supply PMS, AGO, ATK, LPG, and other petroleum products to the local and international markets and provide employment opportunities for Nigerians”, it added.
In the past few years, the Federal Government has been intensifying efforts through policy reforms to reduce the nation’s over-dependence on imported petroleum products.
For instance, the immediate past administration of President Muhammadu Buhari granted licences to various modular refineries’ investors to shore up the country’s local production.
Similarly, the Federal Government has provided supports, including the NNPCL’s 20% equity, for the Dangote Group on its 650,000bpd refinery in Lagos.
