Lagos State, NNPC sign MOU on $25billion refinery and hydrocarbon industrial park

After two years of intensive negotiations, Lagos State Government and the Nigerian National Petroleum Company (NNPC) have signed a Memoradum of Understanding signifying readiness towards the setting up of a Greefield Refinery and Hydrocarbon Industrial Park to be located at the Lekki Energy City within the Lekki Free Zone, Ibeju Lekki, Lagos. Speaking at a brief ceremony at the Lagos State Ministry of Commerce and Industry, Alausa on Thursday 21, October 2010, the NNPC Group General Manager, Greenfield Refineries, Engr. Adebayo Ibirogba described the occasion as a defining moment in the history of business partnership in Nigeria saying, “ by this M.O.U, NNPC and Lagos State Government have agreed to co-promote and co-invest in a Greenfield Refinery and Hydrocarbon Industrial Park at the Lekki Energy City within the Lekki Free Zone.” Ibirogba further described the transaction as a momentous “land for equity” commercial transaction and a shared risk investment which envisages an investment package worth $25billion spread on 1500ha of land in the Lekki Energy City. He also disclosed that the project will be implemented in four tranches over the next 10 years, commencing from the year 2011. In her remarks, Special Adviser to the Lagos State Governor on Commerce and Industry, Mrs. Olushola Oworu described the planned development of the Lekki Corridor by the Lagos State government as an integrated plan which will include the Deep Sea Port, the proposed City Airport as well as the Greenfield Refinery to be developed jointly with the NNPC and other private sector partners.

According to her, the Lekki Free Zone will comprise the Oil and Gas Zone, the Manufacturing Zone as well as the Tourism Zone which will have best in class hotel and recreational facilities. She further expiated on the benefits of the different projects being driven by the present the administration describing them as well-thought saying, “it is a multifaceted development of Lagos State we are aiming at. We also hope that with this joint venture, we will be able to create employment for our people, we will be able to bridge the gap between demand and supply of petroleum products in Nigeria and we will be able to eliminate importation of petroleum products in no distant future. ” Investment in the Greenfield Refinery and Industrial Park will include a 200 to 300KBPD Refinery, an 800MW Power Plant, a 3 million metric ton per annum Fertilizer Plant, as well as a 500 metric ton per annum Petrochemical Complex . Also, all investment will be structured on mutually beneficial and commercial terms amongst the parties to the agreement and anchored on consumer market demand driven by commercial viability. With South West Nigeria accounting for over 40% of national consumption of gasoline in Nigeria, location of a Refinery within the nation’s commercial nerve centre by the Lagos State government and the NNPC is an expression of genuine commitment to meet the energy needs of not only the city but that of the South West region at large. The brief ceremony was attended by the Lagos State Attorney General and Commissioner for Justice, Mr. Supo Sasore (SAN), his counterpart in the Commerce and Industry Ministry, Hon. Adeniyi Oyemade and representatives of the NNPC.