Dangote refinery is not the only refiner the Nigerian National Petroleum Corporation (NNPC) plans to acquire a minority stake in, as its incoming rival, BUA will also be expected to part with some shares.
The government-owned oil company will acquire a stake in BUA refinery in line with a new policy issued by President Muhammadu Buhari-led administration.
The government policy directs NNPC to acquire stake in any privately-owned refinery that has an output capacity above 50,000 barrels per day (bpd) – Ripples Nigeria gathered that both Dangote and BUA refinery have a capacity that exceeds the bpd range.
Dangote refinery has 650,000 barrels-per-day and BUA Group announced that its refiner, which is still in development phase will have 200,000 barrels per day capacity. Aside from these companies, there are still four refineries, also still in development phase, being eyed by NNPC.
The oil importer said the government policy directs “the mandatory participation of the Corporation in any privately-owned refinery that exceeds 50,000 barrels per day capacity.”
It added that, “The new vision is to grow domestic refining capacity, improve petroleum products supply from our local refineries and become a net exporter of petroleum products.” NAN quoted NNPC.
The NNPC didn’t state how the stake acquisition will be financed, but it plans to be a stakeholder. The decision has come as a shock, as the government corporation is also planning to revamp it’s own refinery.
President Buhari had approved $1.5 billion for the rehabilitation of Nigeria’s refinery which NNPC controls. The government refinery has been in a deplorable state for years.