The development has manifold potential for Nigeria – not only will it substantially slash its oil import bill but it could also strengthen its creaking power grid.
In a strategic move aimed at recouping sunken cost in Nigeria’s oil refineries, General Electric has moved to convene a consortium of companies to improve the capacity of the country’s run-down oil facilities.
Other companies, including, Italy’s Eni and GE have promised to work with Nigeria to help it recoup costs in its three oil refineries. The move could potentially help the Nigerian government to reduce its costly oil imports.
The matter was raised during a meeting with the Nigerian National Petroleum Corporation (NNPC), said a spokeswoman from GE.
“We propose that work commences either with the Warri or Port Harcourt refinery as a pilot, as we set a target to improve the refinery capacity before the end of 2017,” said GE to the NNPC.
Nigeria’s oil pipe lines have been subject to frequent attacks which have hampered progress to get the industry back on its feet. Oil imports are consuming a large portion of the nation’s scarce foreign currency reserve.
According to a statement from Emmanuel Ibe Kachikwu, Nigeria’s Minister of State for Petroleum Resources, Total and Chevron were also interested in working on the refineries.
Nigeria has also stated that NNPC and GE could also collaborate on national power projects, which could help the country strengthen its creaking power grid and power cuts.