The Nigerian National Petroleum Corporation has begun talks with trading firms to raise about $1 billion in a prepayment deal to refurbish its largest refining complex at Port Harcourt, it was learnt yesterday.
The money will be repaid over seven years through deliveries of Nigerian crude and products from the refinery once the refurbishment is complete, Reuters quoted some sources as saying, adding that Cairo-based Afreximbank is leading the financing. When contacted, a top source within the corporation told THISDAY that the NNPC wasn’t willing to make any comments on the matter for now. “No comment for now. We will speak about it at the appropriate time,” the source said.
Nigeria, Africa’s most populous country, has four refineries with a combined capacity of 445,000 barrels per day. Nigeria has struggled with the poorly maintained units for decades, with successive NNPC chiefs and politicians announcing a series of unsuccessful plans to revamp, privatise or expand the refineries.