VENTURES AFRICA – Six new refineries with a combined capacity of 180,000 barrel a day will be constructed in Nigeria, this was announced on Wednesday by government officials.
The refineries are to be constructed following the signing of a memorandum of understanding (MoU) by the Nigerian government with Vulcan Petroleum Resources for a N697.5 billion ($4.5 billion) project.
Under the agreement, two of the refineries will be ready for operations in twelve months while the rest will take additional eighteen months to be completed.
While declaring their readiness to commence work, representatives of Vulcan, an affiliate of New York-based private equity firm Vulcan Capital Corporation said:”Each modular refinery, when completed, will refine up to 30,000 barrels of crude oil per day and produce up to five million litres of petrol, diesel, kerosene and LPFO (liquid petroleum fuel oil).”
This will be a big boost to the nation’s daily oil production capacity which has been reduced by its refineries that are running at less than three-quarters of their total capacity of 445,000 barrels per day.