Nigeria’s state oil firm NNPC is in the final stages of talks with two consortiums that include top traders, energy and oil companies to revamp its rundown refineries.
The move is aimed at helping Nigeria, Africa’s biggest crude producer, save billions of dollars on fuel imports.
The two consortiums would be paid via the offtake of refined products rather than cash, obliging them to revive the refineries and keep them running smoothly to ensure they earn profit from their investments.
Nigeria’s refineries operate far below their combined capacity of 445,000 barrels per day due to years of neglect, as well as theft from pipelines and sabotage.
This forces the country to import nearly all the fuel it consumes, a hefty burden because of price caps on gasoline.
The government said it spent $5.8 billion on imports since late 2017.
The first consortium comprising Vitol, Saipem, General Electric, Sahara Group and MRS Oil Nigeria will refurbish the Warri and Kaduna state refineries.
The second consortium is made up of Trafigura, Eni, Cepsa and Oando who will repair the refineries in Port Harcourt.