ICYMI: NCDMB acquires 20% equity in 100,000 bpd refinery project in Port Harcourt

The Nigerian Content Development and Monitoring Board (NCDMB) says it has sealed a deal to acquire 20 percent equity in a 100,000 barrels per day (bpd) refinery project being established by African Refinery Group Limited.

The refinery is in partnership with the Nigerian National Petroleum Company (NNPC) Limited, According to a statement on Monday.

The board said the share purchase agreement for the investment was signed on March 8 by Felix Ogbe, its executive secretary, and Tosin Adebajo, managing director of African Refinery Port Harcourt Limited.

The agency said the deal makes it a key partner in the African Refinery Port Harcourt Limited (ARPHL), co-located with Port Harcourt Refining Company Limited, and operated by the NNPC in Alesa Eleme, Rivers.

Speaking on the deal, Ogbe said the equity investment is the first to be sealed under his leadership. 

He said the board subjected the proposal through rigorous technical, commercial and regulatory reviews and decision gates, in line with its 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.

“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.”

‘NNPC HOLDS 15% EQUITY IN THE REFINERY PROJECT’

According to the statement, 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.

“Details of the investment indicate that the Nigerian National Petroleum Company Limited (NNPC Ltd) holds a 15 percent equity investment in the refinery project, having executed a share subscription agreement in 2024,” the statement added.

“The promoters of the project, African Refinery Group had in 2016 won a competitive bid to co-locate a crude oil refinery within the site of the Port Harcourt Refinery Complex (PHRC), and it executed an agreement to run and operate a 100,000 bpd refinery on 45 hectares of vacant land within the battery limit of the refinery complex.

“The company also signed a sub-lease agreement with NNPC in 2019, giving her a 45.466 hectares within the refinery complex for a tenure of 64 years.

“According to the investment plan, NCDMB will divest from the refinery at the end of the seventh year, counting from the commercial operations date.”

The NCDMB also said some of its investments in refining of petroleum products include the Waltersmith 5,000 bpd modular refinery located at Ibigwe, Imo state.

Others, the boad said, are Azikel group’s 12,000 bpd hydro-skimming modular refinery, 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.