HighlightTop Story

Nigeria, Niger Republic MoU targets 150,000bpd crude in new refinery 

394

Nigeria and Niger Republic are targeting to  produce between 100,000 and 150,000 barrels of crude oil per day in the new agreement to build a hydro carbon and pipeline refinery in Katsina State.

President Muhammadu Buhari of Nigeria and President, Muhamamdou Issoufou of the Republic of Niger witnessed the signing of the agreement at the New Banquet hall of the Presidential Villa, Abuja

” It is my expectation that the when these projects are eventually actualized, their contribution to both Nations will be significant and the deliverables in revenue and otherwise will further enhance the benefits arising from the sector, said Minister of State for Petroleum, Ibe Kachikwu, at the event.

The refinery to be built in Mashi Town of Katsina, according to Ibrahim Talba of Blakoil Energy Refienery, one of those spearheading the first 100 percent private driven Refinery in the north of Nigeria, is worth $2 billion (over N700 billion) and is projected to generate over 2,500 direct jobs and over 10,000 indirect jobs in the country.

The initial capacity expected is  50,000 barrels per day before scaling up to 100,000 and then 150,000 with the crude coming from Niger Republic.

The duration for completion of the modular refinery project is put at between three to four years.

The Minister of State for Petroleum, Ibe Kachikwu and Nigerien Minister of Energy and Oil, Faomakoye Gado, signed the agreement.

The refinery which will be the sixth after those of Warri, Kaduna, two in Port Harcourt and the Dangote Petrochemical and refinery, will be private sector driven with the full support of the governments of both countries, according to President Buhari.

He gave December, 2018 deadline for the submission of the technical details of the project.

The project regarded as mutually beneficial to both countries, will see thconstruction of pipe line that will supply crude oil from the Republic of Niger to the new refinery.

The project is also expected to foster the development of small and medium scale industries through backward and forward linkages

It will also help to reduce carnage and deterioration on Nigeria roads with the less movement of petroleum products from the existing Nigeria refineries to the far northern parts of the country.

It is also geared towards promoting self sufficiency in domestic production of refined petroleum products and distribution, as well as generate employment opportunities for citizens of both countries.

The project is also expected to engender strong socio economic development of the rural areas, especially where the refinery will be located as more social amenities are expected to spring up in the area.

President Buhari who assured of Nigeria commitment to pursue the partnership with vigour and determination, added, “Nigeria and Niger have excellent relations for several decades, as neighbours sharing a long border with common cultural and historical ties.

“Nigeria sees this cooperation on crude oil export from the Republic of Niger and construction of refinery facilities in Katsina State as a “win – win” for both nations.

“The initiative will not only provide a reliable market for the stranded crude from the Niger Republic but will also provide petroleum products for Nigeria, as it aggressively pursues its aspiration on petroleum product self-sufficiency.

“In addition, it is my hope that the current frontier exploration efforts in the Northern part of the country (Chad Basin, Gongola Basin, Sokoto Basin, Bida Basin and Benue trough) will also result in the  provision of  additional hydrocarbon inflow to the corridors of the proposed pipeline and a potential refinery around Kaduna axis.

“I am happy that several productive engagements held between the Nigerian and Nigerien authorities have resulted in the positive agreements to progress with activities on this important project.”

A Steering Committee chaired by the Nigerian Minister of State for Petroleum Resources and the alternate chairman, the Nigerien Minister of Petroleum, will provide strategic leadership, direction and governance oversight for the project.

Also a Senior level Joint Technical Team set to develop the implementation roadmap and strategy on both the refinery and pipeline projects, is led by Nigeria’s Engineer Rabiu Suleiman supported by the DG Hydrocarbon of Niger Republic.

Buhari added, “It is my expectation that by December 2018, this group will come up with a detailed roadmap and guideline leading to actual execution of the projects.

“The detailed roadmap should cover the following: Bankable feasibility studies for both the Refinery and pipeline projects; Optimal project site, pipeline routes and details; Security plan and Selected consortia of investors for both the refinery and pipeline projects.”

The Nigerien President, Mahamadou Issoufou, said the signing constitutes an important step which will be mutually beneficial to both countries.

He said both countries want to work together to extend their economies, adding that Africa will not be develop unless it is strengthen.

He said, “We need to expand power and integration. This MOU is important for us to strengthen cooperation between our two countries.

“We are working as pioneer to develop our value chain. Nigeria is the natural leader of integration process.

“We have decided to put two strategic technical committee in order to achieve the objectives of the projects.In the next few years, our two cooperation will be celebration the export of oil from Niger to Nigeria.”

Kachukwu in his remarks said, already several expressions of interest (EOI) from prospective investors have been received.

A quick summary of general benefits to be derived from these projects by both countries are enormous and include the following

 

  1. Improved economic activities and bilateral relations between Nigeria and Republic of Niger.
  2. Generation of more employment for the citizens.
  3. Petroleum Product availability in Nigeria/Niger on structured legal framework.
  4. Less carnage on our roads and deterioration (damage) to the road infrastructure.
  5. Foster the development of small and medium scale industries through backward and forward linkages.
  6. Socio economic development of the rural areas through provision of social amenities by the refinery developments.
  7. Fostering of downstream value chain business opportunities.

 

Leave a comment

Related Articles

Carjacking in FCT: Police recover Land Cruiser Prado after high-speed hot chase

In a swift response to a distress call, the Federal Capital Territory...

Just in: Abuja Court remands 109 alleged foreign hackers in prison

No fewer than 109 alleged foreign hackers, including females who attempted to...

Lagos, Abuja airports receive full NCAA certification

Murtala Muhammed International Airport (MMIA), Lagos, and the Nnamdi Azikiwe International Airport...

Day 3 of African Military Games: Nigerian Armed Forces Shine, Win 17 Medals

The Nigerian Armed Forces have made a remarkable impact at the ongoing...

Eight secondary school boys seize, gang-rape 14-year-old schoolgirl in Ogun

A 14-year-old schoolgirl in the Ijebu-Mushin area of Ogun State has been...

FG raises N346bln at Nov. 2024 bond auction, reflecting strong investor interest

The Federal Government has successfully raised N346.155 billion at its November 2024...

Breaking: Supreme Court Nullifies National Lottery Act

The Supreme Court on Friday nullified the National Lottery Act 2005 enacted...

NNPC Ltd. hosts NSC boss, pledges support for revitalization of Nigerian football

In a significant move to boost Nigerian football, the Nigerian National Petroleum...

Nigerian youths essential to repositioning Africa, says VP Shettima

Vice President Kashim Shettima has reaffirmed the federal government’s commitment to youth...

Just in: Simon Ekpa ‘ll be extradited to Nigeria to face charges – Defence Headquarters

The Nigerian Defence Headquarters, Abuja, has announced plans to extradite Simon Ekpa,...

NPA’s CEO Dantsoho Makes History as First Nigerian Chairman of PMAWCA

In a groundbreaking achievement, Dr. Abubakar Dantsoho, Managing Director of the Nigerian...

Just in: Senate confirms Omolola Oloworaran as DG PENCOM

The Senate on Thursday confirmed the nomination of Omolola Oloworaran for appointment...

Save for rainy day, Federal Accountant General urges state govts, emphasizes transparency, accountability

In a bid to ensure financial stability during adverse situations and economic...

Just in: Senate approves Tinubu’s $2.2 bln loan request

The Senate on Thursday approved President Bola Tinubu’s loan request of $2.2...

Just in: Reps reject bill for six-year single tenure for president, governors

The House of Representatives rejected a constitutional amendment bill on Thursday seeking...

Just in: Simon Ekpa, four others arrested in Finland over terror-related activities

Finnish-Nigerian separatist agitator, Simon Ekpa, and four others have been arrested in...

Sacked UNIZIK VC Odoh to Tinubu: You can’t fire me through press release

Sacked Vice-Chancellor of Nnamdi Azikiwe University (UNIZIK), in Awka, Anambra State, Prof....

UBA to empower MSME’s with wealth management strategies at its ‘Built to Last’ series

As part of its commitment to deepen the growth and sustainability of...

Olopade assumes office as NSC DG, promises new lease of life for Nigerian sports

Bukola Olopade had assumed office as the Director General of the resuscitated...

Amid High Inflation Rate, IMF Pledges Support for Nigeria’s Economic Reforms

International Monetary Fund (IMF) President Kristalina Georgieva and her team met with...