Nigeria's Forte Oil In Talks On Refinery Deal To Boost Capacity
LAGOS, Aug 4 (Reuters) - Nigeria's Forte Oil said on Friday it was in talks with a major refinery to form a strategic partnership for local refining of petroleum products in Africa's top oil exporter, its chief executive said.
Nigeria has been pushing to refurbish its decrepit refineries, as the country is still mainly dependent on exporting crude oil for imports of refined products.
It has also been seeking new investments to reduce reliance on imported oil products that consume a large portion of the OPEC member's scarce foreign currency reserves, especially with oil prices low.
CEO Akin Akinfemiwa said Forte Oil, majority owned by billionaire Femi Otedola, was exploring partnerships and joint ventures for local refining of petroleum products.
Nigeria's oil minister has said its existing, ageing refineries have a daily domestic refining capacity of 6 million litres, while the daily consumption stands at 35 million.
"We are aggressively pursuing M&A opportunities along the energy value chain," Akinfemiwa told investors in Lagos.
He said the company, with interests in fuel distribution and power, would diversify into the upstream sector through acquisition of marginal oilfields.
Shares in Forte rose 4.99 percent on Friday to 60.37 naira, giving it a market value of 78.6 billion naira ($216 million). Its shares have fallen 32 percent this year, adding to a 74 percent fall last year.
Nigeria's presidency said on Thursday it will legalise currently outlawed mini-refineries in its Niger-Delta oil hub by the end of the year and supply them with crude at reasonable price, a move which could boost local refining.
In May, rival energy group Oando Plc said it was in talks to work with Italian energy company Eni to rehabilitate the Port Harcourt refinery, one of the West African nation's four refineries.
Africa's richest man Aliko Dangote is building an $17 billion oil refinery with a capacity of around 650,000 barrels a day, planned to start operation by 2019.
Forte Oil this week reported an 11.3 percent rise in half-year pretax profit to 4.74 billion naira.
($1 = 364.68 naira)
(Writing by Chijioke Ohuocha, editing by David Evans)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Blockchain Demands Attention in Oil and Gas
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- CNPC Opens Sea-Land Oil Storage and Transport Facility in Bangladesh
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- US Govt Makes Record Investment of $6B for Industrial Decarbonization
- Perenco Still Searching for Missing Person After Platform Incident
- Eni, Fincantieri, RINA Ink Deal on Maritime Decarbonization
- Oil Falls as US Inventories Increase
- Czech Utility CEZ Bucks Weaker Prices, Demand to Log Record Annual Profit
- Ithaca Energy Studies Deal for Eni's UK Upstream Assets
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call