The deputy chief executive officer of Seven Energy International, Kola Aluko, has described the recent deal to increase Nigeria’s crude oil refining capacity as “a crucial step forward” for the country
The Nigerian government signed a US$4.5 billion deal last week with US firm Vulcan Petroleum Resources and Nigeria’s Petroleum Refining and Strategic Reserve to build six new oil refineries with a combined capacity of 180,000 bpd.
Two of the plants are set to be operational within a year.
“Nigeria is Africa’s top exporter of crude oil, but for too long the sector has been held back by inadequate refining capacity,” said Aluko.
“This is a landmark investment and marks the start of a new phase in the expansion and diversification of the industry.”
The Vulcan deal, which is funded by foreign investors, will help the country meet its growing domestic fuel demand by developing its own infrastructure instead of continuing to rely on exports.
Despite having three times more oil in reserves than its nearest rival Angola, Nigeria produces just 2-2.5mn bpd, well below the government’s target of 4m bpd.
The Vulcan deal is set to increase refining capacity by almost 10 per cent.
“The investors involved have made it clear that they see Nigeria as a good place to do business,” said Aluko.
“This is exactly the kind of vision we need to make the industry more self-sufficient, more resilient, and more competitive.”
