ABUJA, Nigeria -- Nigeria this week signed a memorandum of
understanding (MoU) with an American energy firm to build six
oil refineries, in a project worth 4.5 billion dollars, a
government statement said.
Nigeria is Africa's largest oil producer but its refining infrastructure has largely
crumbled, turning the country into a net importer, which often
pays high prices for its own crude that has been processed
The deal between US-based Vulcan Energy, the Nigerian
government and a local firm, aims to build six refineries with
a combined capacity of 180,000 bpd, Nigeria's Trade and
Investment Ministry said in a statement, which also listed the
697.5 billion naira ($4.5 billion) price tag.
Two of the refineries are to be completed within a year,
according to the terms of the MoU.
"This is the beginning of changing our old paradigm from
exporting just raw materials and exporting jobs to the Western
countries," Trade and Investment Minister Olusegun Aganga said
in the statement.
Nigeria produces around 2 million bpd of crude, making it
the world's eighth largest producer, but its petroleum industry
has for years been riddled with corruption and poor
Last week, President Goodluck Jonathan fired the chief
executive of the state oil firm NNPC, a move his office said
was designed to boost transparency and accountability.
Vulcan's vice president, Jim Mansfield, said the MoU
highlighted Nigeria's attractiveness as an investment
"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," he was quoted in the statement as
Houston-based Vulcan currently operates in several US states
as well as Canada.
Dow Jones Newswires