Indonesian firm to build refinery in Nigeria

Photo by PT Intim Perkasa

JAKARTA (TheInsiderStories) – PT Intim Perkasa Nigeria Ltd,a subsidiary of Indonesian oil & coal trading firm PT Intim Perkasa joined with state-owned construction operator PT PP Tbk (IDX: PTPP) interest to build a refinery in Nigeria, the Nigerian National Petroleum Corporation (NNPC) has said in press statement.

Adi Hartadi, Head of Investor Relations of PTPP disclosed this in Abuja during a business meeting with the Group Managing Director of the NNPC, Maikanti Baru. The proposed refinery would be located in Akwa Ibom State and will have refining capacity for 10,000 barrels oil per day (bpd).

Chief Operating Officer for Refineries and Petrochemicals of NNPC, Anigbor Kragha, stated that NNPC placed high premium on investment in the nation’s refining sector. Adding by Maikanti that the corporation had a Greenfield Refinery Department that specialized in new refinery projects and also provided professional support to potential investors in modular refinery in the country in line with the Nigerian Government policy on modular refineries.

He explained, that the country’s three refineries with a combined capacity of 445,000 bpd could not function optimally over the years due to lack of investment, adding that NNPC would give necessary support to the Indonesian Company interest in the downstream sector.

“We have embarked on ambitious plan to fast-track programmes to restore our capacity utilization from 30 per cent to a minimum of 90 per cent in the next 24 months. To do that, we are working on securing financing from third parties, not just funding, but also technical expertise to help us increase our performance to world class levels that they should be,” said Mr. Baru.

He continued, that given Nigeria’s expected population, by 2025, more than 40 million liters of petrol would be required for local consumption, adding that the combined capacity of the nation’s three refineries would only be able to satisfy just above 50 per cent of the projected local demand.

Maikanti expressed optimism that with this kind of investment coming steadily, Nigeria could serve as a regional hub of refined petroleum products for West Africa and beyond. He called on the investors to be mindful of clean fuel policy across African countries and ensure that they produce fuels that meet specification with regards to sulphur content.

Earlier, Dwiyatna Widinugraha, Third Secretary for Economic Affairs, Indonesian Embassy in Nigeria and the leader of the Indonesian delegation, stated that the visit was a follow-up to the earlier visit by the Indonesian envoy to NNPC, the bilateral meeting between the Indonesian Trade Minister with his Nigerian counterpart as well as the visit of Indonesian Prime Minister to Nigeria.

Nigerian Government plan to attract investment in modular refineries as part of efforts to boost local refining capacity.

Intim Perkasa founded in 1986 by Haji Andi Sose in, a retired Army General in Makasar, South Sulawesi. The core business lies in the trading and export of coal, and recently crude oil trading.

The family-owned company exploits 3,000 hectares of coal mines in central Borneo and is in the process of rehabilitating the production of the oil concession in Sumatra. The crude oil concession was granted to Andi Sose by former President Suharto in 2005 for a period of 23 year to operate, renewable, on the condition that it’s development would be for the benefit of the Indonesian people.

(Written by Linda Silaen, Email: linda.silaen@theinsiderstories)