On the 23rd of July, Nigeria and the Republic of Niger signed a Memorandum of Understanding (MoU), for the construction of a hydrocarbon pipeline and a petroleum refinery. The MoU was signed by the Minister of Petroleum Resources, Mr Ibe Kachikwu, on behalf of the country. The project is said to cost $2 billion in total.
The project is said to allow for the export of Nigerien surplus crude oil to Nigeria for the sole purpose of processing the crude oil in a new refinery in Nigeria for improved economic activities at the same time procuring benefits for the two neighboring countries.
The hydrocarbon and pipeline refinery which is projected to produce over 100,000 barrels of crude oil per day and provide 2,500 jobs directly and 10,000 jobs indirectly is to be constructed from Niger to Katsina state where the new refinery would be sited.
Shortly after the signing of the MoU, The president of Nigeria, Mohammed Buhari inaugurated a team to develop the implementation road map and strategy for both the refinery and pipeline projects. He noted that the detailed road map should cover “bankable feasibility studies for both the Refinery and pipeline projects; Optimal project site, pipeline routes and details; Security plan and selected consortia of investors for both the refinery and pipeline projects.
This project will be private sector financed but supported by the governments of both countries. Mr Kachikwu also expressed that the Ministry of Petroleum Resources have already received several expressions of interest (EOI) from prospective investors. Read more