FG, oil firm to establish $4.5bn refineries

THE Federal Government has signed a Memorandum of Understanding (MoU) with a firm for the establishment of two refineries worth $4.5billion in the country.Government sealed the MoU with Petroleum Refineries and Strategic Research Limited on the construction of two modular refineries in the coastal areas of Nigeria at the cost of $4.5 billion dollars in Abuja on Monday.The refineries , which are under Private, Public Partnership arrangement are expected to be commissioned in 12 months time and they have a joint capacity of between 30,000 and 60,000 barrels per day.Mr Olusegun Aganga, Minister of Trade and Investment, who signed the MoU on behalf of the Federal Government, disclosed that it was part of the National Industrial Revolution Plan aimed at stalling the exportation of raw materials and jobs from Nigeria while encouraging the transformation of the raw materials and exportation of finished goods, which would invariably add value to the Nigerian economy.The minister disclosed that the firm had a history of performance and a trusted track record having delivered on bigger projects in Russia and other countries.While noting that the Nigerian National Petroleum Corporation (NNPC) was actively involved in the deal, Mr Aganga stressed that, government would give the firm all the technical support it would need to accomplish the task.'This is part of the paradigm shift we have been talking about. We have to stop exporting crude oil and, therefore, need more refineries.'With the signing of this deal, I am sure the two refineries which will cost about $4.5 billion dollars will be commissioned in a year's time,' he added.Justifying the involvement of the private sector in the economy, the minister remarked that Eleme Petrochemicals, under the private sector, is now 30 times more productive than when it was being controlled by government.
Click here to read full news..