Nigeria Content Online

The Nigeria National Petroleum Corporation (NNPC) and its
partners, China State Engineering Construction Corporation (CSECC), have
commenced the preliminary design of the proposed Greenfield refinery to be
located in Kogi State.

The Nigerian National Petroleum Corporation (NNPC) led a team of
Chinese investors and engineers to appraise the physical environment of the
proposed location of the refinery and kick start preliminary project design
activities on Thursday.

The Chinese investors, the world’s sixth largest engineering
construction company, and China’s biggest, recently signed a memorandum of
understanding (MOU) with the NNPC to finance about 80 per cent of the $23
billion (about N3.45 trillion) plan to construct three Greenfield refineries in
the country, with combined refining capacity of about 750,000 barrels per day
(bpd).

The CSCEC, an arm of the China National Offshore Oil Corporation
(CNOOC), specialising in the construction of nuclear plants, space rockets,
refineries, petrochemical plants, landmark real estates and airports, will
provide technical expertise to the project.

Adebayo Ibirogba, Group General Manager, Greenfield Refineries
of the NNPC, at the weekend presented the graphic detail of the project to
Ibrahim Idris, the Kogi State governor, during a visit to Lokoja, the state
capital.

Mr Ibirogba in his presentation, said that on completion, the
proposed Greenfield refinery would be integrated with an industrial hydrocarbon
park designed to convert natural gas and refined petroleum products into
hydrocarbon derivatives.

New industries

He said that the proposed refinery would attract new industries
to the state, apart from the dredging and maintenance of sufficient navigable
drafts on the River Niger.

He said the commencement of preliminary design activities of the
project would afford the engineering partners the opportunity to appreciate the
physical environment of the proposed location, adding that this would
facilitate the formal take off of pre-construction activities.

Urging the Kogi State government to participate in the
development of the project as a co-investor, assuring that aside financial
returns, he said the facility would help create job opportunities for up to
3,000 workers during the construction phase, and an estimated 2,000 workers to
run the industrial complex on completion.

A Certificate of Occupancy for a 450-hectare stretch of land
across the bank of the River Niger in Itobe village, Ofu Local Government Area
of the state, as a proposed site for the refinery, was presented by the
governor to the visitors during the visit. Mr Idris assured them that the state
government was prepared to provide a conducive environment for the smooth
operation of the refinery, while assuring the security of lives and equipment.

Yu Zhende, the leader of the Chinese delegation and Vice
President of CSECC International division, said the corporation was ready for
the economic partnership, while CSECC will not only assist in sourcing for
funds on competitive terms for the project, but is also expected to ensure that
bona fide Chinese investors take up at least 25 per cent of the equity holding
in the project, in line with the terms of the MOU.

When completed, the Kogi State Refinery is expected to produce
about 300,000 metric tons of Liquefied Petroleum Gas (LPG) per annum.

The NNPC projects that the availability of such a volume of LPG will trigger
a massive increase in the consumption of cooking gas as the preferred domestic
household fuel, replacing firewood, charcoal and kerosene.