NPDC: Refineries rehabilitation will expand Nigeria’s crude oil market

The Nigeria Petroleum Development Company Limited (NPDC) says the ongoing rehabilitation of refineries will expand the crude oil market. 

Ali-Muhammad Zarah, managing director, NPDC, said this on Thursday in Abuja, at the fifth Nigeria International Energy Summit (NIES 2022) with the theme “Revitalising the Industry: Future Fuels and Energy Transition”.

Zarah, who spoke at a session tagged “Upstream Forum” was represented by Adeyinka Adeyemo, executive director, planning and commercial, NPDC.

“As Energy transition reshapes the crude oil market, a plethora of opportunities open in refining, petrochemicals and gas-based industries,” NAN quoted Zara as saying. 

“The domestic crude oil market will expand.”

Zara said the focus of the upstream forum on “Opportunities and Challenges for Crude Oil Markets in a Time of Transition” was apt in the light of current global demand for both increased availability of affordable energy and reduction in carbon footprint.

He said the top oil-producing countries, like Nigeria, are quickly learning how to balance short term economic objectives with long-term business sustainability.

According to him, it could be argued that the burden for decarbonisation has been disproportionately laid at the foot of the oil and gas industry.

He added that the sentiments might not vanish despite the world’s increasing appetite for energy.

“The majority of this new demand will come from developing countries, increasing by almost 24 mb/d, to reach 67 mb/d by 2040,” Zarah said. 

“But much of the demand will still be from the developed world. This implies that there is no expectation for a peak in oil demand over the forecast period to 2040.

“Global oil consumption will exceed 100mb/d, even much earlier than projected years ago.”

In March 2021, the federal executive council (FEC) approved the sum of $1.5 billion for the rehabilitation of the Port Harcourt refinery. It had processed $98 million and N17.2 billion as partial payments for the ongoing rehabilitation works at the refinery.