Nigeria signs MoU for construction of two refineries

The Federal Government of Nigeria signed a Memorandum of Understanding (MoU) with Petroleum Refining and Strategic Reserve Limited (PRSR), a well-known America-Nigeria joint venture. The MoU provides for the construction of two modular refineries in the country, which will require investments amounting to US$4.5 billion. Construction of the refineries is expected to take 12 to 13 months; each of the two refineries would have refining capacities of 30,000-60,000 barrels per day (bpd) of crude oil. Both refineries are expected to produce five million liters of petrol, diesel, kerosene as well as Low Pour Fuel Oil (LPFO) per day. Minister of Trade and Investment, Olusegun Aganga, said: “This is part of the paradigm shift we talk about. We have to stop exporting crude oil and therefore we need more refineries. With the signing of this deal, I am sure the two refineries which will cost about US$4.5 billion will be launched in a year’s time”. The minister reiterated that the Nigerian government is determined to make Nigeria an investment hub in Africa and in the world. (July 10, 2012)