After Dangote, Another $360m Private Refinery Nears Completion, Sets Date to Begin to Produce Petrol

After Dangote, Another $360m Private Refinery Nears Completion, Sets Date to Begin to Produce Petrol

  • Nigeria’s second-largest private refinery, the Azikiel refinery, is about to be completed and almost ready to commence production
  • The refinery owners, the Azikiel Group, said the facility expects mechanical completion this year and full production in 2025
  • The company stated that the plant is about 87% complete and would produce two million litres of petroleum products daily

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Nigeria’s second-largest private-owned refinery, the 12,000 barrels per day Azikiel Petroleum Refinery phase one, is currently under construction in Bayelsa state. It has surpassed 87% completion and is approaching mechanical completion by the end of this year.

The owners, the Azikiel Group, expect mechanical completion in 2024 and commercial operations by 2025.

Azikiel refinery set to begin production, Dangote refinery
Azikiel Group announces 87% mechanical completion of its refinery Credit: Bloomberg/Contributor
Source: Getty Images

Refinery will produce two million litres per day

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The company revealed that the planned phase two, which would start after commercial operations begin, is a 25,00 barrels per day plant.

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When fully operational, the refinery would produce two million litres of EURO V grade petroleum products annually, including petrol, aviation fuel, diesel, and others. It hopes to determine the cost and quality of petrol in Nigeria.

The project is reportedly being delivered by MacDermott, the United States-based Original Equipment Manufacturer (OEM) and engineering, procurement, and construction (EPC) contractor that made the refinery's Inside Battery Limits (ISBL) Process Modules.

Azikiel refinery is 87% completed

A report by ThisDay reveals that the president of the Azikiel Group, Erunani Azibapu, disclosed that 90% of the Process Modules of the facility's ISBL had been shipped into Nigeria, while Outside Battery Limits (OSBL) and Balance of Plant (BOP) are already completed and installed.

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The Azikiel group is a conglomerate of major subsidiaries involved in dredging, power generation, aviation, and mini refinery in the US and the Niger Delta-based hydro skimming refinery.

Azibapu stated that accessing forex had been challenging in the project’s execution, and there were limited options in achieving completion and beginning production at the plant.

The Azikiel Group boss described the facility as the hope of the Niger Delta and Bayelsa, saying that the multi-million dollar plant is a model for what is possible in Nigeria.

In November 2023, the refinery signed a $259 million project deal with Afrexibank.

The debt funding agreement was signed by the president of Azikel Group, Dr Azibapu Eruani, who is also the chairman of the Azikel Petroleum Refinery, and the director of Project and Asset Based Finance of Afreximbank, Helen Brume, on behalf of Afreximbank.

The plant will create 3,000 jobs

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According to him, the project has added value to the Nigerian economy and provided over 80,000 indirect jobs and over 700 jobs, stating that the facility will employ over 3,000 people when fully operational.

The refinery is among many refineries springing up in Nigeria to make the country self-reliant in petroleum products supply.

Recently, the Senate committee on downstream disclosed that two Nigerian refineries, the Port Harcourt and Warri refineries, will become operational this year.

Also, the Waltersmith refinery in Imo state began production and paid dividends to investors.

FG speaks on fixing prices for Dangote refinery

Legit.ng earlier reported that the Nigerian government announced it would not fix prices for the new Dangote Refinery, leaving the company's rates to be determined commercially.

Farouk Ahmed, the chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), gave the assurance.

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Speaking in Abuja during a meeting with key oil marketing companies, Ahmed stated that whatever price the company sells will affect the agreement between both parties.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng

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