NNPCL Invests in African Refinery P/Harcourt to Increase Local Oil Refining

The Nigerian National Petroleum Company Limited, (NNPC) has reportedly made an equity investment in African Refinery Port Harcourt (ARPH).

The deal brings a new refinery within the Port Harcourt refining complex closer, which is predicted to produce 100,000 bpd.

A Nigerian law firm Olaniwun, Ajayi, had provided legal advice to ARPH on the transaction, which was announced on 25 April this year.

The deal took the form of a share subscription agreement between the companies, and it involves the construction, development and operation of a greenfield, deep conversion refinery within the existing Port Harcourt Refining Complex in Rivers State.

Precise financial and performance terms were not disclosed for the transaction, however, he associated facility is estimated to have a 100,000 barrels per day (bpd) capacity.

Established in 1977, the NNPC is a state-owned, for-profit oil company which works with foreign companies to harness Nigeria’s hydrocarbon resources, while ARPH is a special purpose vehicle set up by JIL Engineering & Oil Services and Amber Enerji Makina Logistics.

The NNPC said in a statement that: “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 Premium Motor Spirit, PMS, (petrol), Automotive Gas Oil, AGO, Aviation Turbine Kerosene, ATK, Liquified Petroleum Gas, LPG and other petroleum products to the local and international markets and provide employment opportunities for Nigerians.”

In March London-headquartered Konexa received advise from Olaniwun Ajayi on its contract with Nigerian electricity provider North South Power to develop, build and finance a renewable energy facility in Nigeria.