INDONESIAN FIRM TO BUILD REFINERY IN AKWA IBOM
An Indonesian firm, PT Intim Perkasa Nigeria Limited, a subsidiary of PT Intim Perkasa, Indonesia, has indicated interest to build a refinery in Akwa Ibom.
The feat, if achieved, will give traction to the Federal Government’s plan to attract investment in modular refineries as part of its efforts to boost local refining capacity.
Mr. Adi Hartadi, the Head of Investor Relations of PTPP (Persero) Tbk, partners to PT Intim Perkasa Nigeria Ltd, who disclosed this in Abuja during a business meeting with the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, yesterday, stated that the proposed refinery would be located in Akwa Ibom State.
The refinery, a modular facility, will have refining capacity for 10,000 barrels per day.
Hartadi stated that his company has more than 50 years of experience in construction and engineering, adding that it was desirous of diversifying into downstream operations in Akwa Ibom State.
Responding, the NNPC GMD, Baru, who was represented by the Chief Operating Officer (COO), Refineries and Petrochemicals, Anigbor Kragha, stated that NNPC places high premium on investment in the nation’s refining sector.
The GMD stated that the corporation has a Greenfield Refinery Department that specialises in new refinery projects and also provides professional support to potential investors in modular refinery in the country in line with the Federal Government policy on modular refineries.
He explained that the country’s three refineries with a combined capacity of 445,000bpd could not function optimally over the years due to lack of investment and that NNPC would give necessary support to the Indonesian firm’s interest in the downstream sector.
“On our end, we have embarked on ambitious plan to fast-track programmes to restore our capacity utilisation from 30 per cent to a minimum of 90 per cent in the next 24 months. To do that, we are working on securing financing from third parties, not just funding, but also technical expertise to help us increase our performance to world-class levels that they should be,” Baru stated.
He explained that given Nigeria’s expected population by 2025, more than 40 million litres of petrol would be required for local consumption, adding that the combined capacity of the nation’s three refineries would only be able to satisfy just above 50 per cent of the projected local demand.
The NNPC boss expressed optimism that with this kind of investment coming steadily, Nigeria would serve as a regional hub of refined petroleum products for West Africa and beyond.
He called on the investors to be mindful of clean fuel policy across African countries to ensure that they produce products that meet specification with regards to sulphur content.
Earlier, Dr. Dwiyatna Widinugraha, Third Secretary for Economic Affairs, Indonesian Embassy in Nigeria and the leader of the Indonesian delegation, stated that the visit was a follow-up to the earlier visit by the Indonesian envoy to NNPC, the bilateral meeting between the Indonesian Trade Minister with his Nigerian counterpart.