Lagos, NNPC Sign M.O.U. On $25b Refinery, Hydrocarbon Industrial Park

After two years of intensive negotiations, Lagos State Government and the Nigerian  National Petroleum Company (NNPC) have signed a Memoradum of Understanding  signifying readiness towards the setting up of a Greenfield Refinery and Hydrocarbon  Industrial Park.

The park will be located at the Lekki Energy City within the Lekki Free Zone, Ibeju  Lekki, Lagos.

Speaking at a brief ceremony at the Lagos State Ministry of Commerce and Industry,  Alausa on Thursday 21, October 2010, the NNPC Group General Manager, Greenfield  Refineries, Engr. Adebayo Ibirogba described the occasion as a defining moment in  the history of business partnership in Nigeria.

“ By this M.O.U, NNPC and Lagos State Government have agreed to co-promote and  co-invest in a Greenfield Refinery and Hydrocarbon Industrial Park at the Lekki  Energy City within the Lekki Free Zone.”

Ibirogba further described the transaction as a momentous “land for equity”  commercial transaction and a shared risk investment which envisages an investment  package worth $25billion spread on 1500ha of land in the Lekki Energy City. He also  disclosed that the project will be implemented in four tranches over the next 10  years, commencing from the year 2011.

In her remarks, Special Adviser to the Lagos State Governor on Commerce and  Industry, Mrs. Olushola Oworu, described the planned development of the Lekki  Corridor by the Lagos State government as an integrated plan which will include the  Deep Sea Port, the proposed City Airport as well as the Greenfield Refinery to be  developed jointly with the NNPC and other private sector partners.

According to her, the Lekki Free Zone will comprise the Oil and Gas Zone, the  Manufacturing Zone as well as the Tourism Zone which will have best in class hotel  and recreational facilities.

She further expiated on the benefits of the different projects being driven by the  present the administration describing them as well-thought out.

“It is a multifaceted development of Lagos State we are aiming at. We also hope  that with this joint venture, we will be able to create employment for our people;  we will be able to bridge the gap between demand and supply of petroleum products in  Nigeria and we will be able to eliminate importation of petroleum products in no  distant future, ” she said.

Investment in the Greenfield Refinery and Industrial Park will include a 200 to  300KBPD Refinery, an 800MW Power Plant, a 3 million metric ton per annum Fertilizer  Plant, as well as a 500 metric ton per annum Petrochemical Complex .

Also, all investment will be structured on mutually beneficial and commercial terms  amongst the parties to the agreement and anchored on consumer market demand driven  by commercial viability.

With South West Nigeria accounting for over 40% of national consumption of gasoline  in Nigeria, location of a refinery within the nation’s commercial nerve centre by  the Lagos State government and the NNPC is an expression of genuine commitment to  meet the energy needs of not only the city but that of the South West region at  large.

The brief ceremony was attended by the Lagos State Attorney General and Commissioner  for Justice, Mr. Supo Sasore (SAN), his counterpart in the Commerce and Industry  Ministry, Hon. Adeniyi Oyemade and representatives of the NNPC.

  Copyright protected by Digiprove © 2010 P.M.News