The Hindu Business Line : IOC eyes stake in three Nigerian refineries

INDIAN Oil Corporation (IOC) has expressed interest for acquiring a stake in three refineries in Nigeria and is eyeing refinery turnaround jobs in other African and West Asian countries.

"IOC has submitted an Expression of Interest (EoI) for acquiring a 51 per cent stake in Nigerian Government-owned Port Harcourt, Warri and Kuduna refineries,'' a top official said.

The Nigerian Government plans to privatise these refineries after efforts to refurbish them through Government funding failed to yield results. Nigeria has spent about $700 million (around Rs 3,150 crore) since 1999 on refurbishing the refineries, with a combined `nameplate capacity' of 4,45,000 barrels per day, but problems such as fire, sabotage, poor management, inter-ethnic violence and lack of `turnaround maintenance' have resulted in the plants operating well below capacity.

IOC will face stiff competition from rival Chinese National Oil Company in its pursuit to acquire the 1,50,000 barrels per day Port Harcourt refinery and 1,40,000 barrels per day northern Kuduna plant. "A decision is likely by early next year," the official said.

IOC, which has also got an invitation from Edo State, Nigeria, to build a new refinery, wants Nigerian crude oil for its refineries back home, in return for the refinery jobs. The company has also bid for turnaround/maintenance job of Port Harcourt refinery.

IOC is also scouting for similar jobs in other African and West Asian countries. "IOC, in consortium with Engineers India Ltd, has already bid for upgradation of Tehran and Tabriz refineries in Iran and revamping and upgradation of Ras Lanuf and Azzawiya refineries in Libya," the official said.

The company has also been pre-qualified by the Kenya-Uganda Joint Coordination Commission for the Kenya-Uganda oil pipeline. "Bids for the Kenya-Uganda pipeline are expected to be submitted by the end of this month," the official said.

IOC has also submitted an EoI for participation in the proposed hydro-cracker project in Aden refinery and modernisation of Aden refinery in Yemen.

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