Nigeria's 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 abroad.
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 barrels per day, 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 barrels a day of crude, making it the world's eighth largest producer, but its petroleum industry has for years been riddled with corruption and poor management.
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 destination.
"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 saying.
Houston-based Vulcan currently operates in several US states as well as Canada.
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VULCAN AGAIN!!! OMG!!! I MEAN REALLY NIGERIA, REALLY?
ReplyDeleteWhoever is responsible for conducting due diligence at the Ministry of Trade and Investment should be sacked immediately for not steering its minister, Olusegun Aganga, clear of this disaster in the making.
I can guarantee with absolute certainty that not one refinery will be built in Nigeria by Vulcan Energy.
Minister Aganga reverse course, save your name, character and integrity as well as future embarrassment to Nigeria. I draw your attention to two articles posted on the web among the several post concerning Vulcan Energy and it’s personal.
The first is titled ‘A WHITE MAN BEHAVING UNRULY IN ABUJA’ concerning Jim Mansfield who signed the MOU on behalf of Vulcan Energy. Please see:
http://n2nnews.com/2011/08/24/a-white-man-behaving-unruly-in-abuja/
The second article is titled ‘FAITH’S CHICKENS’. Please see:
http://subsaharanintel.blogspot.com/2011/01/faiths-chickens-story-of-fraud-and.html
I have observed several published articles concerning the signing of this MOU confusing a firm founded by Microsoft’s Paul Allan which shares a similar name, Vulcan Energy, with the Nigerian Vulcan Energy. They are NOT the same, I can assure you that Mr. Allan would have nothing to do with the likes of Jim Mansfield.
YOU HAVE BEEN DULY NOTIFIED AND WARNED; SO NOW ACT APPROPRIATELY!!!
I pray so! Let them not frustrate this God-sent President of ours. He's obviously moving in the right direction. Nigerians should pls be patient with him; after all we have had several Governments in the past that did nothing about the shameful importation of oil for years. He has started sacking the 'bad eggs' and it shall continue. Write constructive suggestions in form of articles and not condemnations.
ReplyDelete