Rehabilitation of Warri, Kaduna Refineries, pipelines to attract $8.7bn investments
By Eyo Nsima
The Nigerian National Petroleum Corporation (NNPC) has disclosed that the rehabilitation of the Warri Refinery and Petrochemical Company (WRPC), the Kaduna Refinery and Petrochemical Company (KRPC), and pipelines will attract investments worth $8.7 billion into Nigeria.
In his virtual presentation – Accessing Energy Infrastructure Opportunities at the NNPC – at an event hosted by the United States Department of Commerce, Friday, the Group Managing Director of the NNPC, Mallam Mele Kyari, urged investors to key into the projects, especially as the Corporation would need between $ 4.5 billion and $4.7 billion investment carry out the rehabilitation.
Specifically, he said: “The selected BOT contractor shall be responsible to raise all financing to Build, Operate and after investment recovery and targeted profit, Transfer the asset back to the NNPC/NPSC.
“Source of revenue from which the BOT contractor is expected to recover its investment and target return shall be from tariffs through operating the assets.”
He also said: “Deepening our play, the NNPC shall continue engaging in oil and gas pipelines expansion and rehabilitation, refinery and petrochemical and tank farm and also other gas-based industries like methanol, fertilizer, etc.
“Furthermore, in a bid to become an energy company of the future, NNPC is diversifying into other high-value sectors like power generation through IPPs, renewable energy initiatives, real estate, and healthcare businesses.
“Our present business model ensures reduction in our carbon footprint by engaging in more environmentally friendly practices and socially beneficial initiatives to host communities and all stakeholders.
“This is the time for reputable investors to join the NNPC in the journey into an exciting future that promises high returns on investment with manageable risks and government support through the investor-friendly environment and favorable fiscal terms.”
However, he added that the NNPC remains committed to growing domestic refining capacity as well as partnering with others to prevent vandalism and theft.
