The Nigerian National Petroleum Corporation (NNPC) is in talks to raise about $1 billion in a prepayment with trading firms to refurbish its largest refining complex at Port Harcourt. The Port Harcourt complex consists of two plants with a combined capacity of 210,000 bpd. In 2019, the Port Harcourt plants including other refineries lost some N167 billion ($439.47 million).
Reuters, which reported this yesterday, quoted seven sources familiar with the discussions, including the spokesperson for Afreximbank. If the financing is concluded, the long overdue rehabilitation of the refinery should reduce Nigeria’s hefty fuel import bill.
This would also mark Nigeria’s second oil-backed financing since the COVID-19 scourge that has added to the difficulty of finding investors as fuel demand is sapped by lockdowns and renewable energy is gaining ground over fossil fuels.
The money would be repaid over seven years through deliveries of Nigerian crude and products from the refinery once the refurbishment is completed, the sources said. Cairo-based Afreximbank is leading the financing. “Afreximbank is looking into a facility for the refurbishment of the Port Harcourt Refinery.
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