NNPC to add 750,000 Barrels of Oil to Daily Production in New deal with CSCEC
The Nigerian National Petroleum Corporation( NNPC) and China State Construction Engineering Corporation Limited( CSCEC) have executed a memorandum of understanding to jointly seek an estimated US$23Billion in Contractor Financing and Supplier Credits from the China Export & Credit Insurance Corporation, SINOSURE, and a consortium of Chinese Banks, for the establishment of 3 No Greenfield Refineries and 1 No Petrochemical Complex at various locations in Nigeria.
NNPC aims to accelerate the construction of new Refineries in Nigeria to stem the flood of imported refined products into the country, currently estimated at US$10 Billion annually. CSCEC on its part desires to expand its presence on the African Continent and establish its footprint firmly in the Nigerian Oil & Gas landscape.
On completion, the 3 Greenfield Refineries will add some 750,000 barrels per day capacity to Nigeria’s refining infrastructure and position NNPC to engage profitably in the international trading of refined petroleum products. In addition, the proposed petrochemical complex will source natural gas from the Nigerian Gas Master Plan to produce polymers, solvents and particularly, gas based fertilizers that are required to boost Nigeria’s agricultural production.
The new refineries will reinforce the ongoing oil & gas reforms in Nigeria which, are primarily symbolized by the Petroleum Industry Bill which will soon be passed into law and the imminent deregulation of the downstream sector of Nigeria’s Petroleum Industry.