Nigeria, Niger MoU targets 150,000bpd in new refinery deal

Nigeria and Niger Republic Tuesday signed agreement to build a hydro carbon and pipeline refinery to process 150,000 barrels of crude oil per day.

President Muhammadu Buhari of Nigeria and President Mahamadou Issoufou of the Republic of Niger witnessed the signing of the agreement at the new banquette hall of the Presidential Villa , Abuja.

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 , according to President Muhammmadu Buhari.

President Buhari gave December, 2018 deadline for the submission of the technical reports on details of the project to enable government fast tracts its take off.

The country had set a target of 2019 for stoppage of petroleum products importation, with the current efforts geared towards the accomplishments of that goal.

The project regarded as mutually beneficial to both countries, will see the construction of pipe line that will supply crude oil from the Republic of Niger to the new refinery, to be located in a border town in Katsina State.

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.

According to the President “ This project will be private sector driven with the full support of the governments of both countries and I am happy to understand that several expressions of interest (EOI) from prospective investors are already being received”.

“In this regard, a Steering Committee has been set up to be chaired by the Nigerian Minister of State for Petroleum Resources and the alternate chair is the Nigerien Minister of Petroleum, to provide strategic leadership, direction and governance oversight for the project”.

Buhari announced that Senior level Joint Technical Team headed by Rabiu Suleiman, carefully selected based on competence to develop the implementation roadmap and strategy on both the refinery and pipeline projects.

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

“The detailed road map should cover the feasibility studies for both the Refinery and pipeline projects, Security plan, selected consortia of investors for both the Optimal project site, pipeline routes and details refinery and pipeline projects.

President Issoufou, in his remarks said the two country shared historical relationships, which the new bilateral agreement is expected to further strengthen

He assured that the Niger Republic will work to guarantee continued flow of crude supply to the new refinery and pleaded with the Nigerian government to fas tract the full completion of the project

He noted that the Niger crude production which came on stream in 2011, with a 20,000 per day crude production capacity will now be boasted to fast tract it to the new about 90,000 barrels per day production, with the coming of the new refinery.