21 June 2017, Sweetcrude, Abuja — An Indonesian firm, PT Intim Perkasa Nigeria Limited, a subsidiary of PT Intim Perkasa, Indonesia, Wednesday, indicated interest to build a modular refinery in Nigeria.
According to a statement by the NNPC, Mr. Adi Hartadi, Head of Investor Relations of PTPP (Persero) Tbk, partners to PT Intim Perkasa Nigeria Limited, disclosed this in Abuja during a business meeting with the Group Managing Director of the NNPC, Mr. Maikanti Baru.
He stated that the refinery, a modular one, will have a refining capacity of 10,000 barrels per stream day and would be located in Akwa Ibom State.
Hartadi stated that the company has more than 50 years of experience in construction and engineering and it was desirous of diversifying into downstream operations in Nigeria.
In his response, the Group Managing Director of the NNPC, Mr. Maikanti Baru, stated that NNPC placed a high premium on investment in the nation’s refining sector.
Baru who was represented by the Chief Operating Officer (COO), Refineries and Petrochemicals, Mr. Anigbor Kragha, stated that the Corporation had a Greenfield Refinery Department that specialized in new refinery projects and also provided professional support to potential investors in modular refinery in the country in line with the Federal Government policy on modular refineries.
He explained that the country’s three refineries with a combined capacity of 445,000bpd could not function optimally over the years due to lack of investment, adding that NNPC would give necessary support to the Indonesian Company interest in the downstream sector.
He expressed optimism that with this kind of investment coming steadily, Nigeria could serve as a regional hub of refined petroleum products for West Africa and beyond.
He called on the investors to be mindful of clean fuel policy across African countries and ensure that they produce fuels that meet specification with regards to sulphur content.
He said, “On our end, we have embarked on ambitious plan to fast-track programmes to restore our capacity utilization from 30 percent to a minimum of 90 per cent in the next 24 months. To do that, we are working on securing financing from third parties, not just funding, but also technical expertise to help us increase our performance to world class levels that they should be.”
He explained that given Nigeria’s expected population, by 2025, more than 40 million litres of petrol would be required for local consumption, adding that the combined capacity of the nation’s 3 refineries would only be able to satisfy just above 50 per cent of the projected local demand.
Earlier, Dr. Dwiyatna Widinugraha, Third Secretary for Economic Affairs, Indonesian Embassy in Nigeria and the leader of the Indonesian delegation, stated that the visit was a follow-up to the earlier visit by the Indonesian envoy to NNPC, the bilateral meeting between the Indonesian Trade Minister and his Nigerian counterpart as well as the visit of Indonesian Prime Minister to Nigeria.