Ugochukwu Ezeagwula
Nigeria and China may sign an accord on the construction of an $8 billion oil refinery in the West African nation after talks next week, the state-owned oil company said yesterday.
A 13-man Chinese delegation is due in Nigeria on July 5 for talks about the facility, said Adebayo Ibirogba, general manager of Greenfield Refineries at the state-owned Nigerian National Petroleum Corporation. The proposed refinery will have the capacity to process 300,000 barrels of oil per day.
“Although the talks have been exploratory for now, we’re positive a deal can be signed after further discussions with the Chinese who will be in the country by Monday,” Ibirogba said.
Nigeria and China in May agreed to $23 billion of funding to build three new oil refineries and a petrochemical complex in the West African nation. The construction of the facilities is aimed at helping the country produce the estimated 750,000 barrels of oil per day it will need over the next decade to curb imports of refined petroleum products.
The proposed refineries will be built in Nigeria’s Lagos, Kogi and Bayelsa states. Ibirogba didn’t say which state the $8 billion refinery would be built in.
Nigeria’s four existing refineries have a combined capacity of 445,000 barrels per day, though they are unable to operate at full production because of ageing equipment and poor maintenance.
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