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Nigeria Plans to hand over majority stakes in refineries – Kyari


The Nigerian National Petroleum Corporation (NNPC) has said Nigeria is holding talks to hand over the majority stakes in Nigeria’s all four refineries, which are all in dire need of an upgrade.

The Group Managing Director NNPC Mele Kyari while disclosing this on Wednesday told Channels TV that discussions were taking place on an operating model in which the state oil company NNPC or the government would be a minority shareholder in the assets.

Kyari said “It means there will be more scrutiny of shareholders and also becoming more efficient to operate. That conversation is on the table,”.

The head of the state oil firm however, did not specify how the government planned to transfer ownership, or to whom.

The refineries have for years worked only sporadically due to chronic underinvestment. NNPC said in April that it had shut them all down to secure funding for their refurbishment, and would no longer manage them when they reopened.

The four refineries are located at three sites in Kaduna, Warri and Port Harcourt. Kyari said the pipelines that feed them with crude oil were badly damaged.

According to NNPC data last month, even though their operating costs totalled $367 million, the refineries processed almost no crude in the 13 months to end June.

Source Nasdaq
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