Nigerian billionaire Benedict Peters to build 500,000-bpd refineries in Niger Delta

Aiteo Eastern Exploration and Production Company (AEEPC), owned by Nigerian billionaire Benedict Peters, is set to build two refineries in Rivers and Bayelsa states with a combined refining capacity of 500,000 barrels per day.

Founded in 2013, Aiteo Eastern E & P Company Limited is one of Nigeria’s largest indigenous oil exploration companies, producing more than 90,000 barrels daily. The Abuja-based firm operates as an integrated energy company, focusing on petroleum product exploration, production, bulk storage, refining, supply and marketing, as well as power generation and distribution services.

According to Nigeria’s ThisDay newspaper, the company has already secured a license from the Department of Petroleum Resources to build the two new refineries in the Niger Delta states of Rivers and Bayelsa.

A company insider who spoke on the condition of anonymity told ThisDay: “Like I said, we are the biggest independent in the country. We are playing across all the value chains. We are building our refinery, which is 500,000 barrels, that’s massive. We are building two: one in Bayelsa and one in Rivers State. That’s 250,000 barrels each. So, we intend to be producing all kinds of petroleum products, ranging from PMS (premium motor spirit), lubricants, petrochemicals, and others. We will be getting feedstock from our producing assets and secondary sources. So, we have all our plans worked out and we are going ahead with them one by one.”

The source concluded by allaying fears in some quarters that the recent emphasis on making an energy transition might hamper the deal.

Africa’s richest man, Nigerian billionaire Aliko Dangote is also on the verge of launching his own 650,000-billion-barrel-per-day petroleum refinery in Lagos worth $19 billion.

The entry of these billionaires into the refining space will help boost Nigeria’s refining capacity and save hard-earned foreign exchange used to import petroleum into the country.

Earlier in October, Aiteo slammed a $2.5-billion lawsuit against the Shell Petroleum Development Company (SPDC) over the sale of its OML-29 oil field. The company claimed that it had acquired the operating license of the disputed oil well from SPDC in 2014 for about $2.7 billion. However, SPDC claimed that it only sold a 30-percent stake to the company.