An Indonesian firm, PT Intim Perkasa Nigeria Ltd, a subsidiary of PT Intim Perkasa, has indicated interest to build a refinery in Nigeria.
The Head of Investor Relations of PTPP (Persero) Tbk, partners to PT Intim Perkasa Nigeria Ltd, Mr. Adi Hartadi said that the proposed refinery would be located in Akwa Ibom State.
The refinery, a modular one, ‘will have refining capacity for 10,000 barrels per stream day.’
Mr Hartadi disclosed this during a business meeting with the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru in Abuja.
He explained that their company has more than 50 years experience in construction and engineering and was desirous of diversifying into downstream operations in Nigeria.
The NNPC Group Managing Director, Dr. Maikanti Baru said that “the Corporation placed high premium on investment in the nation’s refining sector.’’
New refinery projects
Dr Baru stated that the Corporation had a Greenfield Refinery Department that specialised in new refinery projects and also provided professional support to potential investors in modular refinery in line with the Nigerian government policy on modular refineries.
“Nigeria’s three refineries with a combined capacity of 445,000bpd could not function optimally over the years due to lack of investment and NNPC would give necessary support to the Indonesian Company’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,” Dr. Baru explained.
Petrol for local consumption
Given Nigeria’s expected population by 2025, he stressed that more than 40 million litres of petrol would be required for local consumption.
Dr. Baru added that the combined capacity of the 3 refineries would only satisfy just above 50 per cent of the projected local demand.
He expressed optimism that with this kind of investment coming steadily, Nigeria could serve as a regional hub of refined petroleum products for West Africa and beyond.
Clean fuel policy
The NNPC Group Managing Director called on the investors to be mindful of clean fuel policy across African countries and ensure that they produce fuels that meet specification with regards to sulphur content.
Dr. Maikanti Baru was represented by the Chief Operating Officer (COO), Refineries and Petrochemicals, Engineer Anigbor Kragha.
The Third Secretary for Economic Affairs, Indonesian Embassy in Nigeria, Dr. Dwiyatna Widinugraha 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 and his Nigerian counterpart as well as the visit of Indonesian Prime Minister to Nigeria.
Dr Widinugraha led the Indonesian delegation on the visit.
The Indonesian Ambassador to Nigeria, Mr. Harry Purwanto had recently expressed interest in purchasing more crude oil from Nigeria during a courtesy call to the NNPC’s Group Managing Director, Dr Maikanti Baru.