CDMB acquires 20% stake in 100,000 BPD refinery project with African Refinery Group, NNPC

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The Nigerian Content Development and Monitoring Board (NCDMB) has finalized a major deal to acquire 20% equity in a 100,000 barrels per day (bpd) refinery project being developed by African Refinery Group Limited (ARPHL) in collaboration with the Nigerian National Petroleum Company (NNPC) Limited.

The landmark investment positions NCDMB as a key partner in the refinery project, which is co-located with the Port Harcourt Refining Company Limited (PHRC), operated by NNPC at Alesa Eleme, Rivers State.

The NCDMB announced the strategic partnership in a statement released by its Corporate Communications Department.

The Executive Secretary of NCDMB, Mr. Felix Ogbe, signed the agreement at the Board’s liaison office in Abuja, while Mr. Tosin Adebajo, Managing Director of African Refinery Port Harcourt Limited, signed on behalf of the company.

Ogbe revealed that the equity investment was the first major deal signed under his leadership, emphasizing that the proposal underwent rigorous technical, commercial, and regulatory evaluations in line with NCDMB’s Commercial Ventures Investment Policy.

“The board has instituted a robust corporate governance procedure that will safeguard its investment and ensure the optimal performance of the refinery project,” Ogbe stated.

NCDMB emphasized that the investment aligns with Section 70(h) of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which mandates the board to support local contractors and Nigerian companies in building capacity.

The board’s commercial venture investments are also designed to support the Federal Government’s policies, generate employment opportunities, and maximize the value of Nigeria’s hydrocarbon resources.

According to NCDMB, the shares in African Refinery Port Harcourt Limited (ARPHL) were acquired through the Nigerian Content Intervention Company LTD/GTE, a company wholly owned by NCDMB.

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Furthermore, NNPC Limited holds a 15% equity stake in the project, having signed a Share Subscription Agreement in 2024.

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African Refinery Group secured the license to co-locate the refinery within the Port Harcourt Refinery Complex (PHRC) in 2016, following a competitive bidding process.

A Sub-Lease Agreement with NNPC was signed in 2019, granting African Refinery a 64-year lease on 45.466 hectares within the refinery complex.

The 100,000 BPD refinery is expected to complement the rehabilitation of the existing Port Harcourt Refinery and boost local refining capacity.

NCDMB’s Exit Plan and Track Record in Refining Investments

As part of its investment strategy, NCDMB plans to divest from the refinery after seven years from its commercial operations date.

The NCDMB’s strategic equity acquisition in ARPHL’s refinery project underscores its commitment to boosting Nigeria’s refining capacity and enhancing local content participation in the oil and gas sector. The move also aligns with the federal government’s agenda to increase local refining, reduce fuel import costs, and drive economic growth.

With NCDMB and NNPC as major stakeholders, the African Refinery Port Harcourt project is expected to be a game-changer in Nigeria’s oil and gas industry, positioning the country as a regional refining hub in the coming years.