Italian oil major, Eni is said to be planning the construction of a crude oil refinery in Nigeria with an estimated capacity of about 150,000 barrels.
According to a news alert from Reuters News Agency, the refinery will be operated through Agip, Eni’s subsidiary in Nigeria.
Nigeria has been plagued by a dilapidated refinery infrastructure which is not functioning. The country largely imports petrol, diesel and aviation fuel, a cost item that has turned out to be a huge burden on its Forex reserves.
Emmanuel Ibe Kchikwu, Nigeria’s minister of state for petroleum disclosed earlier today that “We reached an agreement that Agip will build a brand new refinery of 150,000 barrel capacity, Emmanuel Ibe Kachikwu told reporters after meeting Eni executives in Abuja.
He said that “A memorandum of understanding is being prepared”.
Eni has not disclosed any information on the matter. Its last update on Nigeria was in January when it said it will strengthen relationships with Nigeria.
Should the project take off anytime soon, Eni will be joining Dangote Refinery, the largest refining facility which is billed to start operations in Lagos, Nigeria’s commercial capital.
There is no information on where Eni will be locating the refinery. However, it is predicted that the facility will be situated within the Niger Delta region.