Nigerian firms to refine 20% of crude oil locally

In a statement by the Nigerian Content Development and Monitoring Board, the Federal Government has disclosed plans to soon announce a policy that will require operating firm to refine locally at least 20% of the crude oil they produce in Nigeria.

Minister of State for Petroleum Resources, Dr Ibe Kachikwu was quoted to have made the disclosure at the ground-breaking of a modular refinery being developed by Waltersmith Refining and Petrochemical Company in Imo State.

While affirming the Nigerian Government has no other option of enforcing the 20% on oil firms, Kachikwu expressed that the percentage would increase to 50% in the next five years.

The Federal Government has since prioritised the production of locally refined oil for local use and to boost oil revenue.

Kachikwu stated that the government remained committed to completely revamp the nation’s four refineries located in Port Harcourt, Warri and Kaduna by 2019, with a target of processing about 500,000 barrels of crude oil daily.

SOURCE: nairametrics.com