Nigeria’s FDI Drive Gets Boost As Indonesian Group Plan New Refinery In Akwa Ibom State

by Ike Obudulu Last updated on August 26th, 2017,

Nigeria’s foreign direct investment FDI drive and stated goal to serve as a regional hub of refined petroleum products for West Africa and beyond has gotten a major boost with the plan by an Indonesian firm, PT Intim Perkasa Nigeria Ltd, a subsidiary of PT Intim Perkasa, Indonesia to build a refinery in Akwa Ibom State.

The Head of Investor Relations of PTPP (Persero) Tbk, partners to PT Intim Perkasa Nigeria Ltd, Mr. Adi Hartadi, who disclosed this in Abuja during a business meeting with the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, stated that the proposed modular refinery, will have refining capacity for 10,000 barrels per stream day. Mr Hartadi explained that their company has more than fifty years of experience in construction and engineering and was desirous of diversifying into downstream operations in Nigeria.

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 as well as the visit of Indonesian Prime Minister to Nigeria.

Responding, the NNPC Group Managing Director, Dr. Maikanti Baru, who was represented by the Chief Operating Officer (COO), Refineries and Petrochemicals, Engr. Anigbor Kragha, stated that NNPC placed high premium on investment in the nation’s refining sector.

The GMD stated that the Corporation had a Greenfield Refinery Department that specialized in new refinery projects and also provided professional support to potential investors in modular refinery in the country in line with the Federal Government policy on modular refineries.

He added 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, adding that NNPC would give necessary support to the Indonesian Company interest in the downstream sector.

He explained that given Nigeria’s expected population, by 2025, more than 40 million litres of petrol would be required for local consumption.

He added that the combined capacity of the nation’s 3 refineries would only be able to satisfy just above 50 per cent of the projected local demand.

He 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.

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Ike Obudulu

Ike Obudulu

Versatile Certified Fraud Examiner, Chartered Accountant, Certified Internal Auditor with an MBA in Finance And Investments who has both worked for and consulted with some of the world's largest companies on main street and wall street in over 20 countries, Ike brings his extensive reporting and investigations experience to bear on his role as Chief Editor.
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