NIGERIA – BUA Group, one of Africa’s leading Foods, Mining, & Infrastructure Conglomerates has partnered with Axens Group- a leading French company- in the development of a mega petroleum refinery facility in Nigeria.
According to a statement from BUA, the agreement is specifically for the supply of process technologies to support the development of the 10million tonnes per annum megarefinery and petrochemicals facility.
This multi-billion-dollar integrated 200,000 bpd refinery and petrochemical plant which is to be located at a site in Akwa-ibom, Nigeria, is expected to produce Euro-V fuels and Polypropylene for the domestic and regional market.
BUA explained that, Axens was selected after a comprehensive process, for its advanced technology licenses in basic engineering, catalysts & adsorbents, proprietary equipment, training and technical services.
The landmark agreement was signed between the Chairman of BUA Group, Abdul Samad Rabiu, and the CEO of Axens, Jean Sentenac.
The signing ceremony was presided over by France’s Minister Delegate for Foreign Trade and Economic Attractiveness, Franck Riester.
The project comes at a time when the Dangote Group- Africa’s largest conglomerate- is in the advanced stages of completing its mega petrochemicals industrial project that is home to the world largest single train petroleum refinery facility.
The BUA refinery which is expected to commence operations in 2024 would be no match in capacity to the Dangote Group project will produce 600,000 bpd once it is fully operational.
It will however be an important addition to the country’s oil industry which currently carries out very little petroleum refining despite Nigeria being a major oil producer in Africa.
According to a report by the Africa Report Nigeria imports 90% of its refined petroleum products and the country is reported to spend 30% of its foreign exchange on importing petroleum products.
Local refinery will thus save foreign exchange and create additional jobs for country’s unemployed population.
The bidding process for BUA’s refinery project was managed by energy consultants KBR, which will also be handling subsequent rounds for the engineering and construction phase, currently underway.
The refinery will be built using an undisclosed mix of debt and equity, with several development and commercial banks being reported to be in negotiations with BUA Group.
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