The Federal Government, in a bid to boost the refining of crude oil in the country, on Monday signed an agreement with an American and Nigerian joint venture group, Vulcan Petroleum Resources Limited and Petroleum Refining and Strategic Reserve Limited, for the construction of six modular refineries.
The six refineries, which are estimated to gulp $4.5bn (N697.5bn), will have a combined capacity of refining 180,000 barrels of oil per day.
Two of the refineries are expected to be completed within the next 12 months, while the others will be completed within the short to medium-term.
The refineries are to be located in areas where there are crude oil pipelines and will be built in collaboration with the Nigerian National Petroleum Corporation.
When completed, each modular refinery will refine up to 30,000 barrels of crude oil per day and produce up to five million litres of petrol, diesel and kerosene.
The Minister of Trade and Investment, Mr. Olusegun Aganga, signed on behalf of the Federal Government, while the Vice-President/Director, Vulcan Petroleum Resources, Mr. Jim Mansfield, and Chairman, Petroleum Refining and Strategic Reserve, Mr. Edozie Njoku, signed on behalf of their respective companies.
Also present at the signing ceremony was the former Governor of Anambra state, Chief Chukwuemeka Ezeife.
Speaking during the agreement sigining, Aganga said the event represented a major milestone in the Federal Government's plan towards industrial revolution, job creation and wealth generation.
He said, “This is a historic moment and a big step for us as a country. Apart from power, one of the critical areas, which President Goodluck Jonathan has made a priority, is to have functional refineries. My understanding is that by the time the whole project is completed, the cost is estimated at about $4.5bn.
“This is the beginning of changing our old paradigm from exporting just raw materials and exporting jobs to the Western countries. There is no nation that has moved from being a poor nation to a rich one by exporting raw materials without having a vibrant industrial base. That is what we have to change for us to be a rich nation, and that is what the National Industrial Revolution Plan is based on.”
Aganga said the ministry would work together with the Ministry of Petroleum Resources and the NNPC to ensure the actualisation of the projects.
“The NIRP is based on areas where we have comparative and competitive advantage as a country. The signing of the MoU is the beginning of the process. We are working in collaboration with the Ministry of Petroleum Resources and the NNPC. We are working together as a team to ensure that in 12 months' time, we will witness the inauguration of the refineries,” he added.
Also speaking, Mansfield said the planned investment was a testimony that the country was a good place to do business.
“The funding for the project will be a non-Nigeria source and is from investors who firmly believe that Nigeria is a good place to do business. We also believe that Nigeria is open for business,” he said.
Similarly, Njoku said his company would work with its foreign technical partner and the regulatory authorities to ensure the successful completion of the project within the timeframe.
He said, “It will take approximately six months to construct each refinery in the US, one month to test and dismantle the refinery for shipping; one month to commence shipment of the refinery complex to Nigeria, followed by four-five months to re-assemble the refinery in Nigeria and commence full production.
“The modular refinery is far easier to construct and maintain, and it can be constructed at any place and relocated to any site depending on the need.”
Posted: at 3-07-2012 08:02 PM (11 years ago) | Gistmaniac
igbonnanna at 3-07-2012 08:04 PM (11 years ago) (m)
The Federal Government, in a bid to boost the refining of crude oil in the country, on Monday signed an agreement with an American and Nigerian joint venture group, Vulcan Petroleum Resources Limited and Petroleum Refining and Strategic Reserve Limited, for the construction of six modular refineries.
The six refineries, which are estimated to gulp $4.5bn (N697.5bn), will have a combined capacity of refining 180,000 barrels of oil per day.
Two of the refineries are expected to be completed within the next 12 months, while the others will be completed within the short to medium-term.
The refineries are to be located in areas where there are crude oil pipelines and will be built in collaboration with the Nigerian National Petroleum Corporation.
When completed, each modular refinery will refine up to 30,000 barrels of crude oil per day and produce up to five million litres of petrol, diesel and kerosene.
The Minister of Trade and Investment, Mr. Olusegun Aganga, signed on behalf of the Federal Government, while the Vice-President/Director, Vulcan Petroleum Resources, Mr. Jim Mansfield, and Chairman, Petroleum Refining and Strategic Reserve, Mr. Edozie Njoku, signed on behalf of their respective companies.
Also present at the signing ceremony was the former Governor of Anambra state, Chief Chukwuemeka Ezeife.
Speaking during the agreement sigining, Aganga said the event represented a major milestone in the Federal Government's plan towards industrial revolution, job creation and wealth generation.
He said, “This is a historic moment and a big step for us as a country. Apart from power, one of the critical areas, which President Goodluck Jonathan has made a priority, is to have functional refineries. My understanding is that by the time the whole project is completed, the cost is estimated at about $4.5bn.
“This is the beginning of changing our old paradigm from exporting just raw materials and exporting jobs to the Western countries. There is no nation that has moved from being a poor nation to a rich one by exporting raw materials without having a vibrant industrial base. That is what we have to change for us to be a rich nation, and that is what the National Industrial Revolution Plan is based on.”
Aganga said the ministry would work together with the Ministry of Petroleum Resources and the NNPC to ensure the actualisation of the projects.
“The NIRP is based on areas where we have comparative and competitive advantage as a country. The signing of the MoU is the beginning of the process. We are working in collaboration with the Ministry of Petroleum Resources and the NNPC. We are working together as a team to ensure that in 12 months' time, we will witness the inauguration of the refineries,” he added.
Also speaking, Mansfield said the planned investment was a testimony that the country was a good place to do business.
“The funding for the project will be a non-Nigeria source and is from investors who firmly believe that Nigeria is a good place to do business. We also believe that Nigeria is open for business,” he said.
Similarly, Njoku said his company would work with its foreign technical partner and the regulatory authorities to ensure the successful completion of the project within the timeframe.
He said, “It will take approximately six months to construct each refinery in the US, one month to test and dismantle the refinery for shipping; one month to commence shipment of the refinery complex to Nigeria, followed by four-five months to re-assemble the refinery in Nigeria and commence full production.
“The modular refinery is far easier to construct and maintain, and it can be constructed at any place and relocated to any site depending on the need.”
Posted: at 3-07-2012 08:04 PM (11 years ago) | Gistmaniac
igbonnanna at 3-07-2012 08:06 PM (11 years ago) (m)
I see this as one good thing by this administration if they actually execute it and not the usual Nigeria's abracadabra style. IT IS A SURE EMPLOYMENT CHANCE!!!
Posted: at 3-07-2012 08:06 PM (11 years ago) | Gistmaniac
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