Mele Kyari: Corporation remains destination of choice for global investors
The Nigerian National Petroleum Corporation (NNPC) expects an investment of about $8.7 billion to flow in during the rehabilitation of the Warri Refinery and Petrochemical Company (WRPC), the Kaduna Refinery and Petrochemical Company (KRPC), as well as the revamping of some of its 5,000-kilometre pipelines throughout the country.
In a virtual presentation titled: “Accessing Energy Infrastructure Opportunities at the NNPC”, at an event hosted by the United States Department of Commerce, the Group Managing Director of the NNPC, Mallam Mele Kyari, insisted that the corporation remained a destination of choice for investors globally.
The NNPC GMD said the national oil company would require between $ 4.5 billion and $4.7 billion investment for the rehabilitation of the refineries in Warri and Kaduna and urged investors to take advantage of the window offered by the corporation.
He added that the downstream also holds enormous investment opportunities, especially in pipeline and depot rehabilitation, revamping of Liquefied Petroleum Gas (LPG) and building of new Compressed Natural Gas (CNG) plants across the country.
He stated that pipelines and depot rehabilitation would be done through Build, Operate and Transfer (BOT), stating that they are estimated to cost about $4 billion.
He said competent and duly qualified project companies would be engaged through open competitive bidding process.
“The selected BOT contractor shall be responsible to raise all financing to Build, Operate and after investment recovery and targeted profit, Transfer the asset back to the NNPC/NPSC.
“Source of revenue from which the BOT contractor is expected to recover its investment and target return shall be from tariffs through operating the assets,” Kyari noted.
He said Nigeria’s over 202 TCF of natural gas reserve represented a huge investment opportunity in power and gas-based industries and invited all serious foreign investors to come to Nigeria.