The Ondo state government on Wednesday, signed a memorandum of understanding (MoU) with a privately owned oil refining firm—Crown Refinery and Petrochemicals Limited. Crown Refinery and Petrochemical Limited’s core business is the refining of crude oil into premium petroleum products. Crown during the signing ceremony said the partnership with Ondo state government is to build a modular refinery facility in the state. They also mentioned that the refinery will provide more employment opportunities to the state’s workforce.
The MoU was signed by the secretary to the government of Ondo state; Mr Sunday Abegunde and the representatives of the company. The project will cost about USD500 million. Receiving the signed documents from the secretary, the Ondo state governor Mr Rotimi Akeredolu (SAN) expressed optimism, saying that the government will create the enabling environment to ensure the successful completion of the project in the state within the stated period.
The chairman of crown Refinery and Petrochemicals Limited, Mr Kassim Adeleke said the project is expected to last 36 months. When the project is completed and the refinery fully operational, it will have an initial capacity to refine about thirty thousand barrels of petroleum products per day. This will be scaled up to about sixty thousand barrels per day within the next five years.
The state government through the governor, expressed readiness to welcome more partnerships to the state. He also mentioned that the administration is aimed at making the state a business hub for investors who will reap bountifully from their investments. In his statements “this state is strategically positioned among the Niger delta states and Lagos state which happens to be Nigeria’s economic nerve centers to make serious-minded and genuine investors reap from their investments”.
According to Mr Kassim Adeleke, the existing major refineries in Nigeria still imports most of their petroleum products. It is what gave birth to Crown petrochemicals to fill the gap and increase daily production in Nigeria. He said the company would be fully engaged in the business of producing lubricants and other refined petroleum products to meet the needs of Nigerians.