The Nigerian National Petroleum Corporation (NNPC) has said that it expects an inflow of about $8.7 billion investment during the rehabilitation of the Warri Refinery and Petrochemical Company (WRPC), the Kaduna Refinery and Petrochemical Company (KRPC), as well as the revamping of some of its 5,000-kilometre pipelines throughout the country.
According to a report from Thisday, this disclosure was made by the Group Managing Director of NNPC, Mele Kyari, while making a virtual presentation titled: “Accessing Energy Infrastructure Opportunities at the NNPC” at an event hosted by the United States Department of Commerce.
Kyari insisted that the corporation remained a destination of choice for investors globally adding that the corporation would require between $ 4.5 billion and $4.7 billion investment for the rehabilitation of the refineries in Warri and Kaduna.
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The NNPC boss pointed out that there are huge investment opportunities in the downstream sector, especially in pipeline and depot rehabilitation, revamping of Liquefied Petroleum Gas (LPG) and building of new Compressed Natural Gas (CNG) plants across the country.
He stated that with an estimated cost of about $4 billion, pipelines and depot rehabilitation would be done through Build, Operate and Transfer (BOT) agreements with competent and duly qualified project companies to be engaged through an open competitive bidding process.
Kyari noted that the successful BOT contractor who shall raise all funds for the project is expected to recover its investment from tariffs by operating the assets and make a profit before transferring the asset back to NNPC.
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He disclosed that the NNPC has over 1,700km of backbone gas transmission infrastructure, owns a 49% stake in NLNG, has 5,000 kilometres pipeline network, four jetties, 21 depots, 575 retail stations and 25 pump stations with an annual industry expenditure in excess of $20 billion.
Kyari noted that the state oil giant will continue with its expansion and rehabilitation of oil and gas pipeline, refineries, and tank farm, including its diversification into other sectors like power, real estate and healthcare businesses.
He 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, fertiliser etc.
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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 favourable fiscal terms,” Kyari stated.
Bottom line
The oil and gas industry which is Nigeria’s biggest foreign exchange earner also remains the country’s most important and biggest investment driver especially with the expected full deregulation of the downstream sector of the oil industry and expected passage of the Petroleum Industry Bill, which will also attract huge investments in the upstream sector.
NNPC’s diversification effort in agriculture, information technology and manufacturing will also be a huge boost to the economic development of the country.