Nigeria Emerges Least Refining OPEC Member with Average of 10,600 bpd in 5yrs

The Organisation of Petroleum Exporting Country, OPEC, has identified Nigeria, a leading African oil producer, as the least refining member with an average equivalent of 10,600 barrels per day, bpd in five years.

The nation refined an equivalent of 33,000 bpd, 8,000 bpd, 1,000 bpd, 5,000 bpd and 6,000 bpd in 2018, 2019, 2020, 2021 and 2022, respectively, according to the latest OPEC Annual Statistical Bulletin 2023, obtained by Vanguard.

On the other hand, Saudi Arabia emerged as the highest refining OPEC member with an average equivalent of 2.6 million barrels per day, mb/d, during the period.

Specifically, Saudi Arabia refined 2.8 mb/d, 2.6 mb/d, 2.3 mb/d, 2.5 mb/d and 2.9 mb/d in 2018, 2019, 2020, 2021 and 2022, respectively.

Checks by Vanguard indicated that Saudi Arabia has five functional refineries while Nigeria has four non-functional state-owned and some privately owned plants.

Except Equatorial Guinea, whose figures were not available, other OPEC members, including Algeria, Angola, Congo, Gabon, Iran, Iraq, Kuwait, Libya, United Arab Emirates and Venezuela also have impressive refining figures during the period.                     

Meanwhile, Nigeria continues to import petroleum products from the global market, a development, experts attributed to inconsistent policies, lack of long-term funds, and difficulties associated with sourcing foreign exchange and feedstock required to support the construction of new refineries.

The experts, who disclosed these in different interviews with Vanguard, yesterday, explained that in the past, many promoters were attracted to investing in refineries because the government allowed them to participate in the lifting of crude oil.

They also disclosed that the promoters of the refineries did not have access to long-term funds and foreign exchange required to import various items, adding that lack of sustainable crude oil supply guarantee also constituted a factor.

In an interview with Vanguard, Lead Promoter, EnergyHub Nigeria, Dr. Felix Amieyeofori, said: “The investors encounter many problems, including lack of funds and feedstock, which culminated in the expiration of the licenses without much impact. But the good thing about it is that promoters have the right to reapply.”

Similarly, the National President, Oil and Gas Service Providers Association of Nigeria, Mazi Colman Obasi, said: “No reasonable investor can invest in a lawless country where there is no rule of law, high level of insecurity and elections are brazenly rigged.”

The former Managing Director, Niger Delta Petroleum Resources, Dr. Layi Fatona, noted that, “Conscientious focus and determination are required in the pursuit and delivery of any project in the Nigerian airspace. There is no capital long enough and not much of equity is available to pursue refining projects.”

However, the Minister of State for Petroleum Resources, Oil, Heineken Lokpobiri, said while inspecting the Port Harcourt Refining Company in Eleme, Rivers State, that the Federal Government would end fuel importation in 2024.

He said: “The essence of today’s inspection is to enable us to see the extent of work done at the Port Harcourt Refinery and we are happy with the level of work done here.

“From what we have seen here, we believe the project will be completed as scheduled. The Port Harcourt Refinery will come on stream fully by the end of this year, 2023. Warri will start operating by the first quarter of next year and then, Kaduna will come on stream towards the end of next year.

 ”We will be going round all the refineries in the country, from Port Harcourt, we will go to Warri, to Kaduna. We will also go to the Dangote refinery to see the level of work there.

“Our objective is to ensure that in the next few years, Nigeria stops fuel importation and that is why we are here to see the extent of work done, and we are satisfied with what we are seeing here.”

He added: “Nigerians should expect a better supply of fuel and a better economy. But I can assure you that Nigeria will have a better deal in this renewed hope administration of President Bola Ahmed Tinubu.” -Vanguard

September 02, 2023