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Indonesian Firm to Build Refinery in Nigeria

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refineries
  • Indonesian Firm to Build Refinery in Nigeria

An Indonesian firm, PT Intim Perkasa Nigeria Limited, a subsidiary of PT Intim Perkasa, has indicated interest to build a refinery in Nigeria, the Nigerian National Petroleum Corporation has said.

The NNPC said PT Intim’s interest in the country was in line with the Federal Government’s plan to attract investments in modular refineries, as part of efforts to boost the local refining capacity.

The corporation stated that the Head of Investor Relations, PTPP (Persero) Tbk, partners to PT Intim Perkasa Nigeria Limited, Mr. Adi Hartadi, disclosed this in Abuja during a meeting with the Group Managing Director of the NNPC, Dr. Maikanti Baru, adding that the proposed refinery would be located in Akwa Ibom State.

The Group General Manager, Group Public Affairs Division, NNPC, Mr. Ndu Ughamadu, in a statement issued in Abuja on Wednesday, noted that the modular refinery would have the capacity to refine 10,000 barrels of crude oil per day.

Hartadi, according to the statement, said the company had more than 50 years’ experience in construction and engineering, adding that it was desirous of diversifying into downstream operations in Nigeria.

Baru, who was represented by the Chief Operating Officer, Refineries and Petrochemicals, Mr. Anigbor Kragha, said the NNPC placed high premium on investments in the refining sector.

He said the corporation had a Greenfield Refinery Department that specialised in new refinery projects and was also providing professional support to potential investors in modular refineries in line with the Federal Government’s policy on modular refineries.

Baru explained 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 the NNPC would give necessary support to the Indonesian company in the downstream sector.

He was quoted as saying, “On our end, we have embarked on an ambitious plan to fast-track programmes that will 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.”

Baru stated that given Nigeria’s expected population, more than 40 million litres of petrol would be required for local consumption, adding that the combined capacity of the nation’s three refineries would only be able to satisfy a little above 50 per cent of the projected local demand.

The GMD called on investors to be mindful of the clean fuel policy adopted by African countries and ensure that they produce fuels that meet specifications with regards to sulphur content.

In his address, the Third Secretary for Economic Affairs, Indonesian Embassy in Nigeria and the leader of his country’s delegation, Dr. Dwiyatna Widinugraha, said the visit was a follow-up to the earlier one by the Indonesian envoy to the NNPC, the bilateral meeting between the trade ministers of both countries as well as the visit of Indonesian Prime Minister to Nigeria.

The Indonesian Ambassador to Nigeria, Mr. Harry Purwanto, had recently expressed his country’s interest in purchasing more crude oil from Nigeria during a courtesy visit to the NNPC.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

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Global debt

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

The United Nations Trade Association has Nigeria recorded a total of $2.6 billion in Foreign Direct Investment (FDI) in 2020, below the $3.3 billion posted in the preceeding year.

South Africa, Africa’s most industrialised nation, reported $2.5 billion during the same year, slightly below Africa’s largest economy and 50 percent below the $4.6 billion attracted a year earlier.

The report also noted that Africa recorded a total of $38 billion FDI in the same year, representing a 18 percent decline from the $46 billion posted in the corresponding year of 2019.

However, Egypt led Nigeria and South Africa with $5.5 billion FDI, an increase of 38 percent from the preceeding year.

The report read in part, “FDI flows to Africa declined by 18% to an estimated $38 billion, from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, fell 63% to $28 billion, from $77 billion in 2019. The pandemic’s negative impact on FDI was amplified by low prices of and low demand for commodities.

UNCTAD also noted that global foreign direct investment declined by 42 percent to an estimated $859 billion, down from $1.5 trillion in 2019.

The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. Flows to Europe dried up completely to -4 billion (including large negative flows in several countries). A sharp decrease was also recorded in the United States (-49%) to $134 billion.

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Economy

FG to Partly Fund Six Rail Projects Connecting All Regions

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rail project

FG to Partly Fund Six Rail Projects Connecting All Regions

The Federal Government will pay a total sum of N71 billion to partly fund six rail projects connecting all regions of the country.

In the report obtained from the Federal Ministry of Finance, Budget and National Planning, the six rail projects marked for development this year are Lagos-Kano rail line (ongoing), Calabar-Lagos (ongoing), and Ajaokuta-Itakpe-Aladja (Warri).

Others are the Port Harcourt-Maiduguri railway, the new Kano-Katsina-Jibiya-Maradi line in Niger Republic and the Abuja-Itakpe and Aladja-Warri Port and refinery/Warri new harbour.

The Buhari administration will also spend N15.1 billion on the development of safety and security of critical projects, airport certification, runway construction, terminal building, among others in the aviation sector in 2021.

Last week, Rotimi Amaechi, Minister of Transportation, said the Lagos-Kano line would be connected from the Ibadan end of the Lagos-Ibadan railway and would cost $5.3 billion.

We are waiting for the Chinese government and bank to approve the $5.3bn to construct the Ibadan-Kano. What was approved a year ago was the contract,” the minister said.

He added, “The moment I announced that the Federal Government had awarded a contract of $5.3bn to CCECC (China Civil Engineering and Construction Corporation) to construct Ibadan-Kano, people assumed the money had come in; no.

“We have not got the money, which is a year after we applied for the loan. We have almost finished the one of Lagos-Ibadan. If we don’t get the loan now, we can’t commence.”

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Economy

FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

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FG Launches E-ticketing Platform to Deepen Train Usage and Convenience

In a bid to improve the usage and enhance the convenience of train transport in Nigeria, the Federal Government on Thursday announced the launching of the Electronic Ticketing platform for the Kaduna-Abuja rail services.

The N900 million E-ticketing platform was introduced by the Minister of Transportation, Chibuike R. Amaechi, and the Nigerian Railway Corporation.

Amaechi said the new platform would improve efficiency, promote accountability, reduce leakage and enhance economic growth, as well as save time.

The E-ticketing platform was a Public-Private Partnership project done in conjunction with Secure ID Solutions, who provide and would manage the system for 10 years in an effort to recoup its investment before the Nigerian Railway Corporation take charge.

Kofo Akinkugbe, the Chief Executive Officer, Secure ID Solutions, said as the new E-platform issued 25,000 tickets after a successful pilot test on Thursday.

Potential Travelers can book via three ways:

1. Mobile app
2. Website
3. POS or Cash at the station

A validator would be used to scan the ticket barcode to ascertain its authenticity before boarding.

Amaechi further announced that self-service ticket vending machines at various train stations would be introduced soon.

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