GE to invest in Nigeria’s refineries
United States (US) multinational General Electric (GE) in Abuja proposed to invest in Nigeria’s three refineries located in Port Harcourt, Warri and Kaduna.
The firm, in a presentation to the Nigerian National Petroleum Corporation (NNPC), Group Managing Director (GMD), Dr. Maikanti Baru and his team, said that its team of partners, including its consortium involving the Engineering, Procurement and Construction (EPC) partners, off-takers, traders and some financiers would be engaged in the initiative.
The multinational headquartered in Boston, Massachusetts, is worth $493 billion in asset. Its business focus areas include oil and gas, power, water supply, aviation, healthcare, transportation and capital.
“We were involved in the tenders that started around last year, which was subsequently withdrawn, but our commitment to bringing the refineries on-stream is still very deep and we are very serious about it. 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,’’ the company stated in its presentation.
GE’s desire to partner with NNPC on the rehabilitation of the three refineries came on the heels of a similar proposal by Italian company Eni to establish cooperation with NNPC for the rehabilitation and enhancement of Port Harcourt refinery as contained in the company’s recent release in Rome.
Leading a high-powered delegation to the NNPC Towers, GE Global Chairman and Chief Executive Officer Jeff Immelt said as part of the offering, GE and NNPC have identified some major national power projects in the country and are developing the scope of intervention in the projects, which have a potential combined capacity of about 4.4 gigawatts.
GE further pledged its readiness to work with the NNPC to make production in the off-shore fields profitable for the benefit of both companies and other stakeholders. It expressed hope to consolidate on its working relationship with the Corporation to expand the prevailing power business and help NNPC achieve its vision of becoming the leading power company in Nigeria.
Welcoming the GE team to the NNPC headquarters in Abuja, Baru expressed delight in the interest GE had to intervene in some vital operational areas of the corporation. He noted that GE’s offer of a package that includes projects financing would greatly improve collaboration and initiate the power projects rapidly.
The NNPC GMD also welcomed GE’s offer for support to boost the nation’s offshore production and raise crude oil reserve ratio replacement. He urged the company to also tap into the opportunities on offer in medical supplies, as the NNPC moves to commercialise the services of its 52 hospitals and clinics spread across the country in the years ahead.