The Nigerian National Petroleum Corporation (NNPC) is seeking to raise $1 billion oil prepay for revamping Port Harcourt refinery.
According to Reuters, the oil firm intends to raise the fund in prepayment with trading firms to refurbish its largest refining complex at Port Harcourt. Although NNPC declined to comment, about seven sources familiar with the discussions confirmed this.
According to the sources, the fund is expected to be repaid over seven years through deliveries of Nigerian crude and products from the refinery once the revamping is complete. Cairo-based Afreximbank is leading the financing.
What they are saying
A spokesman for the Afreximbank said:
“Afreximbank is looking into a facility for the refurbishment of the Port Harcourt Refinery. However, the borrower is yet to be determined.”
Nigeria has four refineries with a combined capacity of 445,000 barrels per day (bpd) – one in the north at Kaduna and three in the oil-rich Niger delta region at Warri and Port Harcourt. The Port Harcourt complex consists of two plants with a combined capacity of 210,000 bpd.
In 2019, the refineries lost about 167 billion naira ($439.47 million) and only Warri processed any oil. In April 2020, they were all shut pending rehabilitation.
The Nigerian National Petroleum Corporation (NNPC) is the state oil corporation, established on the 1st of April 1977. In addition to its exploration activities, the Corporation was given powers and operational interests in refining petrochemicals and products transportation, as well as marketing.