Edo State Signs MoU for Construction of New Crude Oil Refinery

SEATTLE (Oil Monster): The Edo State representatives have signed a memorandum of understanding (MoU) with Chinese consortium towards construction of new crude oil refinery. The proposed refinery would be the state’s first refinery.

The deal was signed by Edo State Governor, Godwin Obaseki during his ongoing mission to China on increasing bilateral business ties and attracting foreign investments in the country. Earlier, another deal was signed with a Chinese company for the development of the Gelegele seaport.

The deal was signed between Obaseki and Sinopec- a Chinese consortium who will handle the construction of the modular refinery. The consortium comprises of Chinese Peiyang Chemical Equipment Company (PCC), Sinopec International Petroleum Service Corporation (SIPS) and Nigerian African Infrastructure Partners (AIP).

According to sources, the first 500 barrels per day phase of the project is expected to get completed within a year, subject to regulatory approvals. The second 5,000 barrels per day phase will follow soon. Upon full operation, the refinery will have capacity to process 5,500 barrels of crude oil per day. It is expected to offer partial solution to the inadequacy of petroleum products in the country.

The construction of the refinery also offers jobs to hundreds of unemployed Edo youths. The local component of the deal ensures that Edo citizens will be provided training in welding and refinery operations. Incidentally, the state aims to become a hub of skilled manpower for the oil and gas industry in the country.