Nigeria strikes major oil deal with South Korea

Mr Femi Adesina, the special adviser on Media and Publicity to the President of Nigeria, on Thursday October 27 2022, confirmed that Nigeria had struck an oil deal with South Korea. The Memorandum of Understanding which was signed in Seoul, South Korea at the first Bio Summit, obligated the South Korean company Daewoo to rehabilitate the Kaduna refinery.

A word from the President of Nigeria.

President Muhammadu Buhari was present and approved the signing of the MoU. He remarked on how admirable and competent the partner company is saying, “Daewoo Group has massive investments in the automobile, maritime and other sectors of our economy. I am also aware that Daewoo is currently engaged in the execution of the NLNG train seven project and also constructing sea-going LPG vessels for NNPC and her partners, He said. This, will open many more windows of opportunity for Daewoo and other Korean companies in Nigeria. I thank you for your faith in Nigeria.”

The State of Our Refineries

Nigeria presently does not refine crude oil but instead imports its refined fuel products, despite having a number of high potential refineries. The Kaduna refinery for example has the capacity to produce 110,000 barrels per day and is one of four major refineries in the government’s possession that has remained dormant for years.
In August last year, the Federal Executive Council (FEC) approved the sum of $1.48 billion contract to be awarded for the rehabilitation of both the Warri and Kaduna refineries.
The NNPC reported that rehabilitation of the Refineries gulped N100 billion in 2021. The money was spent on refineries’ rehabilitation. The refinery in Port Harcourt is currently undergoing repairs by Tecnimont of Italy and it is expected that the plant will start production by December 2023.