MOSCOW (MRC) -- Nigeria and Saudi Arabia plan to draft a memorandum of understanding on an oil and gas partnership that could lead to the construction of a new refinery and investments in liquefied natural gas, reported Reuters with reference to Nigeria’s petroleum ministry.
Nigeria imports the bulk of its petrol, despite being Africa’s biggest crude oil producer, due to its dilapidated refineries. Last month, Nigeria’s state oil company said it was in talks with different consortiums to overhaul its refineries and save billions of dollars on fuel imports.
Nigeria’s petroleum ministry, in a statement issued days after oil minister Emmanuel Kachikwu held talks with Saudi energy officials, said an early draft of a memorandum of understanding would be ready in the first week of May.
"Areas of interest will cover the existing refinery revamp, building of a brand new refinery, LNG investments and product supply trading in crude and refined products," the ministry said in the statement.
It added that Saudi energy minister Khalid Al-Falih had reiterated the possibility of establishing an independent refinery in Nigeria, considering it the best hub from which to reach other African countries.
Saudi Aramco is expanding its downstream operations such as refining and petrochemicals production as part of its drive to become the world’s largest integrated energy firm.
As MRC informed earlier, Saudi Aramco will acquire Royal Dutch Shell’s 50 percent stake in the Saudi refining joint venture SASREF for USD631 million. The purchase, which is part of Aramco’s strategy to expand its downstream operations, will be completed later this year.
Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco"s value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
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