Nigeria signs $4.5bn deal with US firm

2012-07-03 12:10
Shutterstock

Shutterstock

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Abuja - Nigeria on Monday signed a Memorandum of Understanding with an American energy firm to build six oil refineries, in a project worth $4.5bn, a government statement said.

Nigeria is Africa's largest oil producer but its 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 ($4.5bn) 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.

Read more on:    goodluck jonathan  |  nigeria  |  west africa

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
 

The rich will pay - Mpofu

The EFF in Gauteng will focus all its energy on improving the lives of the poor, the party's premier candidate Dali Mpofu says.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille
 
Traffic
Lottery
 
  • Tuesday Century City - 05:58 AM
    Road name: Ratanga Road Southbound
    ROADWORKS - lane closure between Ocean Spirit Avenue and Century Boulevard (until mid April)
  • Tuesday Mitchells Plain - 05:58 AM
    Road name: Spine Road
    ROAD CLOSED between Weltevreden Drive and Seafarer Drive due to roadworks (until mid April)
 
More traffic reports...
 

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Escape winter, head to Mauritius

Escape winter by spending 7 nights in Mauritius' tropical bliss from R13 215 per person sharing. Includes return flights, airport transfers and accommodation. Book now!

Kalahari.com - shop online today

Mother’s Day special offers!

Spoil mom with these awesome specials that will warm her heart. Shop now!

Twisp – the smoking alternative

Buy any 2 refills for R250 and save R149. Offer valid while stocks last. Shop now!

25% off bestselling books!

The Real Meal Revolution by Tim Noakes, Jeffrey Archer’s Be Careful What You Wish for, Man’s Search for Meaning by Victor E. Frank and many more titles. Shop now!

Mother’s Day specials on appliances

Browse our range of Mother’s Day appliances to spoil and pamper mom. Offer valid while stocks last. Shop now!

DStv HD PVR Decoder now R949

The DStv HD PVR Decoder has further revolutionised the television experience with lifelike viewing, sharper images, more vibrant colours and precision picture quality. Now R949, save R550. Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Samsung Galaxy Tab P7500 10.1" Tablet With WiFi & 3G

Samsung Galaxy Tab 10.1 gives you a better experience for...

From R4999.00

I'm shopping for:

Horoscopes
Aquarius
Aquarius

Treat yourself to something beautiful. You tend to put so much energy in making everything around you work harmoniously, and...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.