almost 1 billion dollars invested to relaunch a refinery in this African giant: La Nouvelle Tribune

The Nigeria National Oil Company (NNPC) has announced plans to bring the Kaduna refinery in the north of the country back into service by the end of 2024. The refinery, which was closed for renovation in 2021, is expected to have a production capacity of 110,000 barrels per day.

The Minister of Petroleum Resources of Nigeria, Heineken Lokpobiri, inspected the refinery on October 28 and noted “significant progress” in the work. He also promised federal support to ensure the project is completed on schedule. NNPC plans to start production at the refinery at a rate of 60,000 barrels per day, to generate revenue, and then continue to work towards the full capacity of 110,000 barrels per day.

For the rehabilitation of the Kaduna refinery, NNPC signed a $741 million contract in February with South Korean firm Daewoo Engineering & Construction. Minister Lokpobiri also noted that with proper infrastructure, Nigeria would be capable of producing up to 2 million barrels of oil per day, but illegal refineries and pipeline vandalism were hampering this capacity.

As a reminder, West African giant Nigeria overtook Libya (1.196 million) and Angola (1.11 million) to become the top oil producer on the African continent with an output of 1.347 million barrels per day during the month of September, according to the information provided by the Organization of Petroleum Exporting Countries (OPEC).

Oil is a crucial global energy resource, the production and distribution of which is governed by the Organization of the Petroleum Exporting Countries (OPEC). This organization, made up of 13 members, aims to stabilize oil markets by setting production quotas. OPEC’s demands directly influence oil prices, world supply and the global economy.