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Lagos, NNPC sign N3750trn MoU on oil refinery

By Olasunkomi Akoni & Daniel Alfred

Lagos—Lagos State Government and Nigeria National Petroleum Corporation, NNPC, yesterday, signed a Memorandum of Understanding, MoU, for the allocation of 1,500 hectares of land for the proposed Lekki GreenField Refinery and hydrocarbon Industrial park worth $25 billion (about N3750 trillion).

The event finally signalled the commencement as well as conclusion of the negotiation between the two parties which started two years ago.

Special Adviser to the state governor on Commerce and Industry, Mrs Olusola Oworu, and Group General Manager, Green Field Refinery, Engr. Adebayo Ibirogba, signed the MoU at a brief ceremony held at the state Ministry of Commerce and Industry in Lagos.

Speaking at the event, Ibirogba said the event is undoubtedly a defining moment in the history of business partnership in Nigeria, adding that it was the first time ever that NNPC and the state government would be consummating a significant business partnership of the nature involving the establishment of a world class refinery and hydrocarbon industrial park.

He said: “By this MoU, NNPC and Lagos State Government have agreed to co-promote and co-invest in a hydrocarbon industrial park at the Lekki energy city within the Lekki Free Trade Zone. This momentous Land for Equity commercial transaction is a shared risk investment which envisages an investment package worth an estimated $25 billion, spread on 1,500ha of land in the Lekki energy city, to be implemented in four tranches, over the next 10 years, commencing from 2011.”

Investment shall be in the following areas: 200-300KBPD refinery, 800MW power plant, fertilizer plant, petrochemical complex, supply of crude oil and natural gas.

All investment shall be structured on mutually beneficial but strictly commercial terms, anchored on consumer market demanded driven by commercial viability.

Ibirogba added: “The South West of the country account for over 40 per cent of the national consumption of gasoline in Nigeria. Locating a refinery in Lagos therefore, is an expression of a commercial desire to meet the ever growing energy need of this state which is also the commercial capital of the country.”

At the end the parties are expected to initiate all the necessary steps required to take physical possession of the first 550 hectres of land allocated, in order to commence pre-construction works for the refinery.

“It is our sincere hope that this initiative will provide a workable blueprint for the development of several other proposals currently being discussed with other state government who desired to establish hydrocarbon complexes similar to the Lekki energy city.”


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