Nigeria signs $4.5B deal to build 6 refineries

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Category: Business and Economy
Published on Tuesday, 03 July 2012 18:54
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Nigeria has signed a $4.5 billion deal with a U.S. company and its Nigerian partner to build six refineries.

A spokeswoman for Nigeria's trade ministry said in a statement late Monday that U.S.-based Vulcan Petroleum Resources Ltd. and Nigerian-based Petroleum Refining and Strategic Reserve Ltd. signed the deal with the government in the capital of Abuja.

Edozie Njoku, chairman of the Nigerian company, said Tuesday that all the funding for the project would come from outside the country.

He said they opted for modular refineries because there are many local challenges to building a refinery from scratch. Njoku said each refinery will be built in the U.S., disassembled for shipping and reassembled in Nigeria.

Nigeria, a top U.S. crude oil supplier, imports much of its oil products.