Baker Hughes Expresses Interest in Nigeria’s Refining Industry
Baker Hughes, a global oil and gas conglomerate based in Houston, United States, has expressed a strong interest in investing in Nigerian refineries. This development aligns with the Nigerian federal government’s intensified efforts to reduce dependence on imported petroleum products. The company is also eyeing participation in the upcoming bid round for marginal oil fields in Nigeria.
Baker Hughes is one of the world’s largest oil field services companies, operating in over 120 countries.
During a meeting with the Minister for State Petroleum Resources, Sen. Heineken Lokpobiri, on the sidelines of the 28th United Nations Climate Change Conference (COP28), the Chairman/President of Baker Hughes, Mr. Lorenzo Simonelli, reaffirmed the company’s commitment to contributing to the Federal Government’s energy transformation agenda.
In a statement issued in Abuja, the Special Adviser to the Minister on Media and Communications, Nneamaka Okafor, noted that Baker Hughes expressed keen interest in sustaining and enhancing its investment in Nigeria’s oil and gas industry, including a willingness to invest in refineries.
Baker Hughes’ interest in Nigerian refineries signifies a noteworthy achievement in the government’s efforts to attract investment into the oil and gas sector. Simonelli emphasized the company’s readiness to collaborate with the Federal Government in advancing sustainable energy practices, aligning with the goals of COP28.
He said: “Nigeria is a blessed nation with vast potentials and great opportunities in diverse sectors. As a partner with the Federal Government over the years, we are inspired to direct investment in the refinery domain of oil and gas. Therefore, whatever we can do to support to get started, I am willing to do that even now.”
Mr. Lorenzo Simonelli, the Chairman/President of Baker Hughes, acknowledged the pivotal role Nigeria plays in the global energy landscape and stressed the importance of public-private partnerships in driving meaningful progress.
In response, Sen. Heineken Lokpobiri expressed appreciation for Baker Hughes’ interest, stating that the company’s move would further sustain Nigeria’s efforts to increase oil and gas production and enhance domestic refining of crude oil. Lokpobiri highlighted Baker Hughes’ historical contributions to the nation and expressed optimism about deepening collaboration through increased investment in Nigeria’s oil and gas industry.
The Minister for State Petroleum Resources assured the Baker Hughes delegation of the Federal Government’s commitment to creating an enabling environment for investments in the refinery sector. He emphasized that adequate measures would be put in place to facilitate the seamless realization of Baker Hughes’ investment plans in Nigeria.
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He stated: “I am very happy that you have joined other companies in identifying the great opportunities and government’s favorable policies in our oil and gas sector and with the advent of the Petroleum Industry Act (PIA) we now have a workable framework that guarantees a conducive environment for investment.”
Nigeria’s three refineries, located in Port Harcourt, Warri, and Kaduna, have been non-operational for several years. However, ongoing rehabilitation efforts are being carried out at these facilities. There are expectations that the Port Harcourt refinery will resume operations by the end of the current month, signaling a step forward in the efforts to revitalize and bring these crucial refining assets back online.
