More Competition As Another Nigerian Billionaire Plans To Build Refinery
- There is set to be more competition as Tony Elumelu has spoken about plans to build a refinery in Nigeria
- His company, Heirs Energies, is an oil and gas firm that successfully acquired an oil field from Shell
- The Nigerian billionaire has also challenged the government on the need to boost Nigeria's oil production levels
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.
Tony Elumelu, founder of Heirs Energies has hinted at plans by his company to establish a refinery.
He disclosed this at the Nigeria Petroleum Industry Leadership Forum hosted by Heirs Energies recently.
Source: Getty Images
Elumely explained that the company planning a refinery as a long-term goal.
Elumelu shares plan for his refinery
Speaking further, Elumelu said that for now, his company, which acquired OML 17 from Shell several years ago, has a vision to ramp up daily oil production to 100,000 barrels per day, up from the current 53,000 barrels.
He noted that this is part of the company's commitment to improving Nigeria's energy security and fostering industrialisation across Africa.
His words:
"We produce over 53,000 barrels of oil daily, and our goal is to reach 100,000 barrels per day.
"We wanted to begin with oil production first. Once we secure sufficient crude, expanding into fertilisers, chemicals, and refining will become more feasible.
"But what is more important is having the raw material, which I am pleased we now have. 53,000 barrels is not enough, we aim to increase it to 100,000 barrels. That is why we are meeting here for three days, strategising on how to achieve this.
Source: UGC
In his speech, Elumelu also acknowledged the improvement in crude oil production under the current administration, which has increased Nigeria’s output to 1.8 million barrels per day.
However, he emphasised the need for even higher production levels to support economic diversification., InsideBusiness reports.
Regarding Nigeria’s target of 2.5 to 2.7 million barrels per day, Elumelu expressed optimism, citing Heirs Energies’ success in increasing production from 21,000 to 53,000 barrels since acquiring its asset from Shell.
"We understand that Heirs Energies alone cannot reach this target, but we aspire to be a catalyst for the sector."
He attributed this growth to the Tinubu administration’s policies and executive orders, which have improved the sector’s potential.
With improved security and policy support, Elumelu believes Nigeria is on the right path to maximising its oil and gas resources, stabilising the exchange rate, and driving economic progress.
Elumelu, who also chairs Transcorp Group, addressed the persistent challenges in Nigeria’s power sector.
He noted that Transcorp, the country’s leading power generation company, has a capacity of 2,000 megawatts but remains constrained by inadequate gas supply.
OPEC wants Nigeria to increase crude oil production
Legit.ng earlier reported that Ademola Adeyemi-Bero, the chairman of the Board of Governors of the Organisation of the Petroleum Exporting Countries (OPEC) has challenged the Nigerian government to boost crude oil production.
According to him, Nigeria should be producing up to four million barrels of oil per day, given its hydrocarbon reserves.
Nigeria currently produces about 1.7 million and there are efforts to ensure crude oil production is 2.1 mbpd.
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Source: Legit.ng
