NIGERIA ANNOUNCES LAUNCH OF ITS SECOND OIL REFINERY

State-run Nigeria National Petroleum Co. said its second oil refinery in the southern city of Warri is now operational, a major boost for the country as it seeks to move away from costly fuel imports.

The 125,000 b/d Warri refinery is “operational” although “we are not 100% complete,” NNPC CEO Mele Kyari said at the plant on Monday. The plant, which has undergone an $898 million renovation since 2021, is operating at 60% capacity and will focus on direct production of kerosene, diesel and naphtha, Nigeria’s president said in an emailed statement.

The additional output at the Warri plant brings Africa’s top oil producer closer to self-sufficiency in locally produced petroleum products after the giant 650,000-bpd Dangote refinery in Lagos began operations earlier this year. While fuel imports have not been completely halted, the central bank said increased domestic production could reduce foreign exchange demand by at least 15%.

Last month, NNPC said it had resumed production at its oldest 60,000-bpd refinery in Port Harcourt, which is operating at 70% capacity, while renovations continue at its third refinery in Kaduna.