Senior Vice President of the Nigerian Agip Oil Company (NAOC) Masimmo Insulla has said the company had begun feasibility studies for a 110,000 barrel per day refinery to be located in the Niger Delta. Insulla made the comments during a workshop held for the company’s vendors.
We are implementing a number of projects in the Nigerian oil and gas industry as well as energy sector including our Zabazaba deep offshore project, ongoing feasibility for the construction of a brand-new 150,000 barrel-of-oil-per-day refinery, support for refurbishment of Port Harcourt refinery, efficiency of the national grid, alternative energy mix.
Agip joins other companies such as Integrated Oil and Gas and the Dangote group that have embarked on constructing refineries in the country.
Why Agip is making the move
Despite being one of Africa’s largest crude oil producers, Nigeria’s three major refineries are mostly comatose leaving the country dependent on imported refined products. A rise in global oil prices leads to increased fuel prices on the domestic market.
Benefits of the project
Though the refinery is a long way from completion, it provides immense benefits to the country. Several jobs will be created, while the refinery is being constructed, and on its completion. The refinery will also reduce Nigeria’s dependence on imported petroleum products. Agip will also earn additional foreign exchange income if it decides to export refined products from the refinery.
Nigeria Agip Oil Company (NAOC) is a subsidiary of Italian oil firm Eni, and has operated in Nigeria since 1962. The company has offshore and onshore operations, as well as a stake in the Nigeria Liquified Natural Gas (NLNG) project. Agip is currently entangled in bribery allegations over the Malabu Oil well which it acquired in partnership with Shell.
