By Daniel Alfred
The Nigerian National Petroleum Corporation, NNPC, and the Lagos State Government, LASG,  have signed the Memorandum of Understanding, MOU, for the allocation of 15 hectares of land for the proposed Lekki Greenfield Refinery, valued at $6billion (N900bn).

The MoU is in fulfillment of the Federal Government’s plan to build four greenfield refineries in different parts of the country to aid easy supply and distribution of petroleum products, with a view to reducing current high level of products importation.

The Group General Manager, Greenfield Refineries, NNPC, Mr Adebayo Ibirogba, at the signing of the Execution of the Memorandum, at the State Secretariat in Lagos on Thursday, said that by the MoU, NNPC and LASG have agreed to co_promote and co_invest in a Hydrocarbon Industrial Park at the Lekki Energy City within the Lekki Free Zone.

He said, “The momentous ‘Land for Equity’ commercial transaction is a shared risk investment, which envisages an investment package worth an estimated price of US$25 billion, spread on 1500hacter of land in the Lekki Energy City, to be implemented in four tranches, over the next 10 years, commencing in 2011.

“We shall henceforth, take physical possession of the first 550hacters of land allocated, in order to commence pre_construction work for the refinery” he said.

Ibirogba also explained that the “Investment shall be in areas of a 200_300KBPD Refinery, 800MW Power Plant, Fertilizer Plant, Petrochemical Complex and the supply of crude oil and natural gas.

“It is our sincere hope that this initiative will provide a blue print for the development of several other proposals currently being discussed with other state Governments who desire to establish Hydrocarbon Complexes similar to the Lekki Energy City,” he said.

He also gave the assurance that all investments shall be structured on mutually beneficial, but strictly commercial terms, anchored on consumer market demand driven by commercial viability.

He noted that since the South West accounts for over 40 percent of the national consumption of petrol in Nigeria, locating a refinery in Lagos is therefore, an expression of a commercial desire to meet the ever growing energy needs of this sprawling mega city, which is also the commercial capital of the country.