Nigeria and Saudi Arabia to draft MoU on oil and gas -Nigeria oil ministry

Adds details, quotes, background

ABUJA, April 26 (Reuters) - 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, Nigeria's petroleum ministry said on Friday.

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.

(Reporting by Camillus Eboh; Writing by Alexis Akwagyiram; editing by David Evans and Kirsten Donovan)

((alexis.akwagyiram@thomsonreuters.com; +234 8188 779 319; Reuters Messaging: alexis.akwagyiram.thomsonreuters.com@reuters.net / Twitter: @alexisak))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.