http://www.punchng.com/Articl.aspx?theartic=Art200705180425715.

I can't find this Korean company online
Korea Power Corporation Energy Resources Limited

I hope this is not another NITEL Pentascope deal.

Dangote, Otedola, Transcorp buy PH Refinery for $561m
Everest Amaefule and Obinna Ezeobi, Abuja


The Bureau of Public Enterprises on Thursday sold 51 per cent equity in the Port Harcourt Refinery to Bluestar Oil Services Limited Consortium.

The Bluestar Consortium comprises Aliko Dangote’s Equity Energy Resources; Femi Otedola’s Zenon Oil and Transnational Corporation.

It paid $561m for the refinery, which produces 210,000 barrel of refined petroleum products per day.

The transaction which was one of the 18 concluded by the BPE on Thursday, however, led to the closure of the headquarters of the Nigerian national Petroleum Corporation in Abuja by protesting members of the National Union of Petroleum and Gas workers.

A source at the BPE told our correspondent that equity Energy Resources owned 60 per cent equity stake in the consortium, Transcorp 10 per cent and a technical partner 10 per cent.

“This $561m they offered is above the reserve price,” Reuters quoted an official of the bureau, Mr. Patrick Akinkotu, as saying.

Bluestar was the only bidder for the refinery after the two other bidders- Oando Plc and a consortium led by Petroplu of Switserland, were disqualified for failing to include a bankdraft with their bids.

Although Refinee had at the first round of the bidding offered $350m ahead of the Bluestar consortium, it was disqualified because it did not include 50 per cent of the bid price.

Oando was disqualified when the N10bn draft it enclosed failed to match 50 per cent of the $200m it offered to pay for the refinery.

Having been cleared to proceed to the second round, Bluestar raised its offer to $561m and provided a draft for $300m to cover for the initial deposit of the bid price.

In an interview with journalists, Dangote expressed satisfaction with the conduct of the exercise.

He said that Bluestar would invest $200m in the first phase of expanding the refinery.

He said, “There is nobody that will come and grow our own economy for us and that is why we are heavily investing. We believe in the country and we believe in the economic policy of Nigeria and that’s why we are here to make sure that we bid and win. It’s not only about winning. It’s about where do we go from here.

“We intend to make sure that we expand the refinery. Apart from that, we already have plans to build a refinery of 300,000 barrels per day in Lagos. Because really it is very criminal to be importing petroleum products of $9bn when we are a producer. That is the main reason why we are here.

“Right now, for the reactivation, we intend to pump in $200m; that is for the first phase. The second phase is to double capacity of the refinery which I think is going to cost us about $3bn and we are ready to do that.”

In another transaction, the Dangote Group emerged the preferred bidder for the Onigbolo Cement Company in the Republic of Benin after staking a price of $1.781bn.

For the Kaduna Refinery, however, the sole bidder China National Petroleum Corporation – could not match the reserve price after offering $102m.

[b]The Egbin Power Plc was also sold to a foreign firm, Korea Power Corporation Energy Resources Limited , for $280m.[/b]Concessionaire for the Ajaokuta Steel Complex, Global Infrastructure Nigeria Limited, also bought 60 per cent of the complex for $525m to become a joint stakeholder with the Federal Government, which retains 40 per cent.

Infrastrutica emerged the preferred bidder for the National Arts Theatre Lagos. The company staked N35.84bn for the 35-year period it would manage the national facility.

On the other hand, BHS International emerged preferred bidder for Tafawa Balewa Square. It will pay N9.5bn spread through the 25-year period it is concessioned to manage the complex.

Similarly, Aulic Nigeria Limited emerged preferred bidder for the Lagos International Trade Fair Complex. It staked the sum of N40bn spread over a period of 25 years of concession.

The sole bidder for Ayip-Eku Oil Palm Company, Wingsong M-House Palm Oil Investment Limited, emerged the preferred bidder at a price of N527m.

On the Kaduna refinery, the Chinese firm which had been offered the refinery by President Olusegun Obasanjo for the Chinese various involvements in several sectors of the economy declined to raise its offer when it was told that the offer did not match the reserve price.

Consequently the matter was to be referred to the National Council on Privatisation, which was scheduled to meet Thursday (yesterday) afternoon.

Although KEPCO was the sole bidder for the Egbin power plant, Chairman, Technical Committee, NCP who conducted the sale of the enterprises with BPE Director General, Mrs. Nkechi Chigbue, announced that the offer was above the reserve price.

Consequently, it was designated as the preferred bidder subject to the approval of the National Council on Privatisation, which rectifies transactions conducted by the BPE.

Although BPE had about a fortnight ago announced that four firms – Dangote Industries Limited, Flour Mills of Nigeria Plc, SCB Lafarge and BUA International Ltd – were bidding for Onigbolo Cement Company, Dangote eventually emerged sole bidder.

The Federal Government has 43 per cent stake in the company; technical partner, F.L Smith, owns six per cent, Benin Republic has 51 per cent. It is the Federal Government’s stake that was sold to the Dangote Group.

Several Liquefied Petroleum Gas depots, coal blocks and mining titles to varied minerals were also sold to several investors.

Meanwhile, the National Union of Petroleum and Natural Gas Workers on Thursday sealed up the premises of the Nigerian National Petroleum Corporation in Abuja, demanding that the Bureau of Public Enterprises suspend the sale of Kaduna and Port Harcourt Refineries.

The Group Chairman, NUPENG, NNPC, Mr,  Williams Ibiba Inko, said the privatisation was not transparent and that labour issues were not resolved.

“We are not against privatisation but let the government resolve issues pertaining to our severance benefits,” he said.

The workers estimated about 4,000 workers will lose their jobs out of the present 9,000 after the privatisation process.

“Even the BPE confirmed that the process will lead to job losses to the tune of about 4,000 when the two refineries and Pipeline and Products Marketing Company go out for sale,” Inko said.





It has an installed production capacity of 500,000 metric tonnes of cement per year and an integrated plant that uses limestone and clay found on location.

Sahara Energy Resources Limited emerged preferred bidder for Calabar LPG depot at a price of $11.11m. At a price of $10 million, MRS Oil and Gas Limited emerged reserved bidder.

For Kano LPG, MRS Oil and Gas Limited emerged preferred bidder at a price of $4 million.

Some of the bidders for the LPG blocks were declared winning bidders although their bids did not match the reserved prices. Such bids would be referred to NCP for further directives.

Those that bidded for coal blocks included Western Metal Products Company Limited, MINL Limited, Ken Pauline Investment Limited, Taurin Iron & Product Limited, Western Goldfields Limited, GINL and Denca Services Limited.

For the mining titles, the prospective investors included New Nigeria Development Company, Osychris Industries Limited, Savanah Gold Limited, Mineral Watch Consults Limited and Equator Mines Limited.

Others are Ken Pauline Investment Limited, Western Metal Products Company Limited, Segilola Gold Limited, Livingspring Minerals Products Company Limited and Shoreline Power Company Limited.