Home

NIGERIAN REFINERIES' PRIVATIZATION SOUGHT

Jan. 10, 1994

Nigerian National Petroleum Corp. has proposed the Nigerian government proceed with partial privatization of the country's four refineries. In anticipation of government approval, NNPC has hired several auditing firms to evaluate the refineries. Two are at Port Harcourt, with capacities of 150,000 b/d and 60,000 b/d, and the other two are at Warri 125,000 b/d and Kaduna 110,000 b/d. After a privatization scheme is drawn up, NNPC would solicit investors to purchase interests in the

Nigerian National Petroleum Corp. has proposed the Nigerian government proceed with partial privatization of the country's four refineries.

In anticipation of government approval, NNPC has hired several auditing firms to evaluate the refineries. Two are at Port Harcourt, with capacities of 150,000 b/d and 60,000 b/d, and the other two are at Warri 125,000 b/d and Kaduna 110,000 b/d.

After a privatization scheme is drawn up, NNPC would solicit investors to purchase interests in the refineries. Proceeds from those investments would go toward revamping and modernizing the refineries.

Critical to the effectiveness of a privatization formula and implicit in the government's approval would be deregulation of petroleum product prices a highly controversial step in Nigeria in order to make the venture attractive to investors.