Vulcan Energy to build Six Refineries in Nigeria for $ 4.5 billion
American firms, Vulcan energy and its Nigerian joint-venture partner, Petroleum Refining and Strategic Reserve (PRSR) have signed a $ 4.5 billion with the government to build six refineries. The refineries will have a capacity of 30,000 barrels/day each to max-out a total capacity of 180,000 barrels per day, effective handling the majority of the country’s refined products need.
The Minister for Trade and Investment, Segun Aganga, signed on behalf of the Federal Government while 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.
Two of the refineries are expected to be completed within 12 months.
Speaking during the signing, the Minister for Trade said the purpose of the deal was in line with the National Industrial Revolution Plan (NIRP) and aimed to create national wealth by focusing on conversion of raw materials to finished products in the country.
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.”
He added, “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.”
Vice President of Vulcan, Jim Mansfield said, “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.”
Chairman of PRSR, Njoku 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.”