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Kyari: NNPC needs $5bn from investors

NIGERIA STATE-OWNED Nigerian National Petroleum
Corp. (NNPC) has revealed it will need around
$5bn of private sector investment funds to build
two condensate refineries and expand pipeline
infrastructure.
“We need $3,097bn to build condensate
refineries and LPG infrastructures with addi-
tional $2.7bn worth of investment to sustain
rising demand for petroleum products in the
country,” Group Managing Director Mele Kyari
said on October 29. He was speaking during the
Oil Trading & Logistics Africa Downstream
Week expo in Lagos.
Nigeria currently consumes 15.1mn tonnes
of petroleum products annually and this volume
is expected to rise to 17.3mn tonnes by 2025.
On completion, the Aliko Dangote refinery is NNPC head Mele Kyari, shown in May 2021 (Photo: Twitter/@NNPCgroup)
envisaged to contribute about 60% of its 650,000
barrels per day (bpd) output to the country’s government involvement turned off prospective
domestic fuel needs while the Port Harcourt investors. More precisely, the issue of regulated
refinery will add up its 215,000 bpd. Even with pricing of petroleum products stood as a barrier.
that, “we would still have a shortfall of 17mn Investors’ appetite for projects from the
litres daily deficit of premium motor spirit,” NNPC, according to analysts, has been dom-
Kyari said. “We need to refine 1.5mn barrels a inated in recent years by China, but this trend
day to keep our head above water.” may change slightly if good governance meas-
In the past, licences were issued to inves- ures are more strongly emphasised in the coun-
tors to construct modular refineries but heavy try’s energy sector. ™

Inpex sells stake in Offshore

D.R. Congo block to Perenco

DEM. REP. OF CONGO INPEX (Japan) announced last week that it had
divested all of its holdings in the Offshore D.R.
Congo block, which is located off the coast of the
Democratic Republic of Congo (DRC).
In a statement dated October 27, Inpex said it
had sold its subsidiary Teikoku Oil (D.R. Congo)
to the operator of the block. As a result of this
sale, Perenco Energies International, a subsidi-
ary of Perenco (UK/France), will add Teikoku’s
32.28% stake to its own 67.72% stake, making
it the only shareholder in Offshore D.R. Congo.
Inpex explained its decision to unload the
asset by pointing to declining production at
the block. It noted that the fall in output levels
had not been unexpected, since Offshore D.R. Perenco now has a 100% stake in the Offshore D.R. Congo block (Image: Inpex)
Congo came on stream more than 45 years ago.
Additionally, it said, since there are few pros- consolidated financial results is minimal and
pects for expanding operations, the project is a has already been factored into the forecasted
good candidate for divestiture from the compa- consolidated financial results for the year end-
ny’s portfolio. ing December 31, 2021,” the Japanese firm said
“The impact of this matter on Inpex’s in its statement.

P6 www. NEWSBASE .com Week 44 03•November•2021