Nigerian company, Azikel Petroleum Refinery, a subsidiary of the Azikel Group, has received $259 million in debt funding from the African Export-Import Bank (Afreximbank) to build a refinery in the country.
The deal was achieved at the Intra-African Trade Fair 2023, held between 9th and 15th 9 in Cairo, Egypt. It will expectedly create energy sufficiency for the development of Nigeria and the African continent.
In a statement, Azikel’s Public Relations Officer, Mr. Austin Ebipade said that the deal will facilitate new industrialisation in Nigeria.
President of Azikel Group, Dr. Azibapu Eruani, and the Director of Project and Asset Based Finance at Afreximbank, Helen Brume signed the debt funding agreement.
Eruani is also chairman of the Azikel Petroleum Refinery.
The statement reads: “The debt funding is the participation of Afrexim Bank in the construction, development, and operation of the 12,000 bpd Azikel Hydro-skimming Refinery in Bayelsa State, Nigeria.
“The Azikel Refinery Project is aimed to bring relief to the challenges of refined petroleum products insufficiency in Nigeria. Eruani said that the deal will usher in sustainable development, thereby creating energy sufficiency for the development of Nigeria and the African continent. With this, he said Nigeria would be the hub of refined products and abundant clean energy. He added that the products will be exported to other African countries and beyond. He assured that the Azikel Hydro-skimming Refinery’s daily output would contribute significantly to the energy demand across the continent”.
The Organisation of Petroleum Exporting Countries (OPEC) recently revealed that Nigeria is about to witness the establishment of small modular refineries with 20,000 bpd capacity in the medium term.
On Saturday, 28th October 2023, the Nigerian Upstream Petroleum Regulatory Commission (NURPC) said that it would take all the required steps within the Petroleum Industry Act 2021 to ensure enough and regular supply of crude oil to upcoming refineries in Nigeria.
The commission summoned a meeting with 52 crude oil exploration and production companies to ensure the ramping up of feedstock for new refineries in Nigeria.
In a statement, NURPC’s Head of Public Affairs and Corporate Communications, Mr. Olaide Shonola warned that there would be consequences for undermining the process.
