US firm Baker Hughes to invest in Nigerian refineries

The federal government says Baker Hughes, a global oilfield services company, has announced its willingness to invest in Nigerian refineries.

Lorenzo Simonelli, the chairman and president of Baker Hughes, made this known during an engagement with Heineken Lokpobiri, minister of state for petroleum resources (oil), on the sidelines of 28th United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates (UAE).

According to a recent statement by Nneamaka Okafor, special adviser to the petroleum minister on media and communications, during the meeting, Simonelli expressed the company’s interest in sustaining and enhancing their investment in Nigeria’s oil and gas industry. 

This, according to the statement, includes the readiness of the US-headquartered firm to invest in Nigerian refineries.

He expressed his company’s commitment to contributing to the federal government’s energy transformation agenda.

“Nigeria is a blessed nation with vast potentials and great opportunities in diverse sectors,” he said. 

“As a partner with the federal government over the years, we are inspired to direct investment in the refinery domain of the oil and gas. 

“Therefore, whatever we can do to support to get started, I am willing to do that, even now.”

In his response, Lokpobiri commended the oil and gas company for its longstanding partnership with Nigeria in the energy sector.

He emphasised the company’s significant contributions over the years and expressed optimism about deepening the partnership through increased investment in the nation’s oil and gas industry.

Lokpobiri said the federal government is committed to creating an enabling environment for refinery investments.

He said adequate measures would be put in place to facilitate the seamless actualisation of Baker Hughes’ investment plans. 

“I am very happy that you have joined other companies in identifying the great opportunities and government’s favourable policies in our oil and gas sector and with the advent of the PIA, we now have a workable framework that guarantees conducive environment for investment,” Lokpobiri said. 

The development comes amid rehabilitation works at the country’s four refineries in Port Harcourt, Kaduna, and Warri. 

While the Port Harcourt refinery is expected to come on stream this month, Lokpobiri had said the Kaduna refinery will begin operation by the end of 2024 while the Warri refinery will come on stream by the end of the first quarter of 2024.