Singaporean firm backs Niger Delta Refinery with $1.7bn

06 September 2012, Sweetcrude, ABUJA – PROMOTERS of the 100,000 barrels per day capacity Niger Delta Refinery and Petrochemicals Company Limited have signed a $1.7 billion (about N270 billion) financing agreement with a Singaporean company for the project.

The joint venture financing agreement between the Nigerian firm and the Singapore-based Eton Group was signed in Abuja on Monday. N222 billion of the total funding is for the engineering and construction aspect of the project while N47.7 billion ($300 million) is for start up operations and feedstock.

Construction of the refinery, to be located in Ibeno, Akwa Ibom State, will commence in December. It will be completed in 24 months.

Managing Director of Niger Delta Refinery and Petrochemicals, Allan Rennie said at the agreement signing ceremony, that since the company secured its license in 1996, funding has remained a challenge.

“We have been in financing, construction and oil business for a long time not only here but elsewhere. We have the proper ingredient to finance and construct and we know that finance has always stopped financing of any private refinery in this country,” he stated.

He added: “We are here to make a statement that we have the ability and happy that we have a partner that is committed to ensuring that the project come to fruition.

“We are also aware that the government legislation and policies are still in place to allow the success of projects of this nature and if the government can offer a little assistance along the ways, we are sure that the commencement and completion date would be met”.

It is projected that the planned refinery will create 750 directed jobs with another 4,000 to 7,000 jobs to be created externally in support operations.

About the Author