The Federal Government has said it will reduce its stakes in Joint Venture oil assets, refineries and other downstream subsidiaries such as pipelines and depots, The Punch reports.
The Economic Recovery and Growth Plan, a Medium Term Plan for 2017 to 2020, which was released on Tuesday by the Ministry of Budget and National Planning, stated that the government’s stakes in other oil and non-oil assets would be significantly reduced. In a bid to increase local production capacity, the government said it would increase the refining capacity to meet domestic demand and become a net exporter of petroleum products by 2019.
According to the plan, the key activities include the conclusion of downstream liberalisation; implementation of new business models for the refineries; and the revamp of the refineries to increase capacity utilisation. The government said it would encourage private-sector participation through co-location and JV arrangements, and work with the National Assembly to ensure passage of the PIB.
According to Bloomberg, the economic blueprint also stated plans to reduce the government’s stake in upstream joint-venture oil assets and other holdings. Selling them will “optimize their efficiency and reduce fiscal burden on the government,” according to the proposal posted on the Ministry of Budget and National Planning’s website.