The Nigerian National Petroleum Corporation (NNPC), has commenced moves to attract 20 companies to make substantial investment worth $20 billion in order to meet the Federal Government’s target of increasing refining capacity in the country, Vanguard reports.

Investigations showed that the apex oil corporation has, in the past few weeks, been engaging with the investors in order to inform, educate as well as assist them to prepare various packages required in the process of applying for licenses. On completion of the engagement, the promoters of the modular refineries would be equipped with vital knowledge to submit their applications to the Department of Petroleum Resources (DPR), that is vested with the responsibility to issue such licenses.

Confirming the development on the sidelines of a forum on modular refineries in Lagos, the General Manager, Refining Directorate, Mr. Ahmed Danladi, who is involved in the process, disclosed that the NNPC decided to play the role in order to guide potential investors to invest in the sector. He said that the playing of this role became very important, especially as many potential investors did not know much about the sector.

In a follow-up telephone interview, Danladi added that: “Building a modular refinery is not cheap. It cost millions of dollars to establish a modular refinery with 10,000 barrels per day, bpd. “But building a 100,000 bpd to 150, 000 bpd modular refinery can cost between $1 billion to $2 billion. So, investors need to have adequate funds to go into business,” he added.