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Wednesday, 25 July 2018

Katsina Refinery To Cost $2 Billion

An approved oil refinery at Mashi in Kastina State would cost $ 2 billion (N724,720,000,000.00), according to a report from The Nation.

The planned refinery could produce 150,000 barrels a day once completed in 2021.

Nigeria's Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, and Niger's Minister of Energy, Foumakaye Gado, signed a memorandum of understanding on the construction of the refinery in Abuja on Tuesday.

"However, we are currently mentally structuring our minds for a period of three years to complete the refinery work, but that depends on what we find in engineering studies," said Kachikwu.

According to the minister, it is also possible to create another extension of the refinery in Kaduna State.

"This is going to be in Katsina but there is potential for an extension to Kaduna but keep in mind that it started first from the point of view (of Niger) wanting to build a pipeline from Niger to the Kaduna Refinery. "

"We closed the door because the quality of Niger's crude was not the same as ours and we should have taken about 90% of our crude to match their own 10% of crude oil. any sense.

"So, at that point, we decided to make a refinery focused on their crude," he said.

Regarding the proposed refinery, a Nigerian investor, Alhaji Ibrahim Zakari, said that about two billion dollars were needed for the construction of the Mashi refinery in Katsina.

He committed to leading the takeoff of the first 100% private refinery.

Zakari announced that its company, Blak Oil Energy Refinery, had mobilized a substantial portion of the $ 2 billion needed to build the refinery.

"The funds come from abroad, the United States, Canada, India and the Middle East."

He explained that the crude for the refinery would come from the Republic of Niger.

According to him, it will take about five years for the company to complete the project.

He said the project, once completed, would provide employment opportunities to more than 2,500 Nigerians.

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