Eni to build crude oil refinery in Nigeria

Eni to build crude oil refinery in Nigeria

- Italian oil company Eni plans to build a crude refinery in Nigeria

- The refinery will have a capacity of 150,000 barrels

- It will be built through its Agip subsidiary

Nigeria's minister of state for petroleum, Dr Ibe Kachikwu has revealed that Italian oil company Eni plans to build a crude refinery in Nigeria.

Kachikwu made the disclosure while speaking to journalists on Tuesday, May 9.

According to Reuters, Nigeria has been seeking investment in the sector to reduce reliance on imported oil products that consume a large portion of the nation's scarce foreign currency reserves.

Eni to build crude oil refinery in Nigeria

Dr Kachikwu said a memorandum of understanding is being prepared to make the project a reality

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It is no news that after years of neglect Nigeria's existing, ageing refineries produce hardly any fuel.

"We reached an agreement that Agip will build a brand new refinery of 150,000 barrel capacity,'' Kachikwu said after meeting Eni executives in Abuja.

NAIJ.com gathered that a memorandum of understanding is being prepared by both parties to make the project a reality.

ENI executives declined to talk to reporters at the event, but in January the company said that it would intensify oil and gas exploration in Nigeria and help to revamp the Port Harcourt oil refinery.

Meanwhile, oil prices collapsed on Thursday, May 4 to their lowest since late November as investor worries about the world's stubbornly persistent glut of crude erased most of the gains that followed last year's OPEC's output cut.

The slide worsened after OPEC delegates downplayed the chance that their group and other producing countries would deepen their output cuts when they meet on Thursday, May 25.

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They did say current output cuts were likely to be extended. This is coming few weeks after Nigeria’s oil production for the month on March suffered a dip as the country’s output was to 1.269 million barrel per day (BPD) according to the Monthly Oil Market Report (MOMR) released by OPEC.

Source: Naij.com

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