Another Investor Acquires 20% Ownership in Port Harcourt Refinery
- There is an ongoing project at the Port Harcourt Refinery to increase its capacity by 100,000 barrels per day
- The refinery project is being handled by the African Refinery Group Limited in Port Harcourt, Rivers State
- The NCDMB has decided to acquire a 20% equity stake in the project in partnership with NNPC Limited
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian Content Development and Monitoring Board (NCDMB) has secured a 20% equity stake in the new 100,000 barrels per day refinery project by the African Refinery Group Limited in Port Harcourt, Rivers State.
This marks a strategic partnership with the Nigerian National Petroleum Company Limited (NNPC) and underscores efforts to enhance local content in the oil and gas sector.
Source: Getty Images
The new partnership was announced in a statement released on Monday, March 11.
According to the NCDMB, the share purchase agreement was finalised on Thursday last week with Executive Secretary Felix Ogbe signing on behalf of the board while Tosin Adebajo, Managing Director represented the African Refinery Port Harcourt Limited.
The statement reads:
"The Nigerian Content Development and Monitoring Board (NCDMB) has sealed a deal to acquire 20% equity in a 100,000 barrels per day (bpd) refinery project being established by African Refinery Group Ltd, in partnership with the Nigerian National Petroleum Company (NNPC Ltd).
"The share purchase agreement for this investment was signed on Thursday, and it will make NCDMB a key partner in the African Refinery Port Harcourt Limited (ARPHL), being co-located with Port Harcourt Refining Company Limited, operated by the NNPC Ltd, in Alesa Eleme, Rivers State."
Under the agreement, NCDMB acquired the shares through its subsidiary, Nigerian Content Intervention Company LTD/GTE.
Details of the investment indicate that the Nigerian National Petroleum Company Limited (NNPC Ltd) holds a 15% equity investment in the refinery project, having executed a share subscription agreement in 2024.
Source: Getty Images
Port Harcourt refinery 100,000bpd construction
The promoters of the project, African Refinery Group had in 2016 won a competitive bid to co-locate a crude oil refinery within the site of the Port Harcourt Refinery Complex (PHRC), and it executed an agreement to run and operate a 100,000 BPD refinery on 45 hectares of vacant land within the battery limit of the refinery complex.
The company also signed a sub-lease agreement with NNPC in 2019, giving her a 45.466 hectares within the refinery complex for a tenure of 64 years, Punch reports.
NCDMB refining investments
He confirmed that the Board subjected the proposal through rigorous technical, commercial and regulatory reviews and decision gates, in line with NCDMB’s Commercial Ventures Investment Policy.
He added:
"The Board has also instituted a robust corporate governance procedure that will safeguard its investment and ensure optimal performance of the refinery project."
According to the investment plan, NCDMB will divest from the refinery at the end of the seventh year, counting from the commercial operations date.
Some of NCDMB’s other investments in refining petroleum products include the Waltersmith 5000 barrels per day (bpd) modular refinery located at Ibigwe, Imo State, Azikel group’s 12,000 barrels per day (bpd) hydro-skimming modular refinery, at Gbarain, Yenagoa, Bayelsa State and Duport Midstream’s 2,500 bpd modular refinery at Egbokor, Edo State, and they are at different levels of operations and development.
3 Nigerian firms get approval to build refineries in 2 states
In a previous report by Legit.ng, the Federal Government of Nigeria, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has issued a licence for the construction of new refineries to three Nigerian companies.
The three refineries will contribute 140,000 barrels per day (bpd) to Nigeria’s domestic refining capacity.
The companies approved to build the refineries are Eghudu Refinery Limited, MB Refinery and Petrochemicals Company Limited and HIS Refining and Petrochemical Company Limited.
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Source: Legit.ng
