The Nigerian Content Development and Monitoring Board (NCDMB) has signed an agreement to acquire 20 per cent equity in a 100,000 barrels per day (bpd) refinery project.
The refinery is being established by African Refinery Group Ltd, in partnership with the Nigerian National Petroleum Company (NNPC Ltd).
The Executive Secretary of NCDMB, Engr. Felix Ogbe signed the agreement at the Board’s liaison office in Abuja, while the Managing Director, African Refinery Port Harcourt Limited, Tosin Adebajo signed on behalf of the company.
The share purchase agreement will make NCDMB a key partner in the African Refinery Port Harcourt Limited (ARPHL), being co-located with Port Harcourt Refining Company Limited, operated by the NNPC Ltd, in Alesa Eleme, Rivers State.
Ogbe remarked that the equity investment is the first to be sealed under his leadership.
According to him, the Board subjected the proposal through rigorous technical, commercial and regulatory reviews and decision gates, in line with NCDMB’s Commercial Ventures Investment Policy.
The Board has also instituted a robust corporate governance procedure that will safeguard its investment and ensure optimal performance of the refinery project, he added.
The deal is part of the Board’s commercial venture programme, which is supported by section 70 (h) of the NOGICD Act, where NCDMB is charged to “assist local contractors and Nigerian companies to develop their capabilities and capacities” in furtherance of Nigerian content development in the oil and gas industry.
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The Board’s commercial venture investments are also geared to catalyze Federal Government’s strategic policies, provide job creation opportunities in the construction and operation phases, and add value to the nation’s hydrocarbon resources.
The shares for the African Refinery Port Harcourt Limited project were purchased under the Nigerian Content Intervention Company LTD/GTE, a company limited by guarantee, and wholly owned by the NCDMB.
Some of NCDMB’s investments in refining of petroleum products include the Waltersmith 5000 barrels per day (bpd) modular refinery located at Ibigwe, Imo State, Azikel group’s 12,000 barrels per day (bpd) hydro-skimming modular refinery, at Gbarain, Yenagoa, Bayelsa State and Duport Midstream’s 2,500 bpd modular refinery at Egbokor, Edo State, and they are at different levels of operations and development.
