BUA Group, a Nigerian conglomerate concentrating on manufacturing, infrastructure, and agriculture, has strengthened its conglomerate by diversifying into oil and gas.
It has signed a deal with France’s largest hydrocarbons group, Axens, to refine 200,000 barrels per day of crude oil in Nigeria.
With the deal signed in France on Tuesday, Axens France’s largest Hydrocarbons group would license key refinery technologies to BUA Group for its greenfield refinery and petrochemicals facility in Nigeria according to a press release from Axens.
The multi-billion-dollar integrated project which aims at producing Euro-V fuels and Polypropylene for the domestic and regional market would be located in Akwa Ibom state.
The new refinery is expected to be operational in 2024.
BUA Group Chairman and CEO Abdul Samad Rabiu said: “Once completed, this RFCC-based complex will produce high-quality gasoline, diesel, jet fuel meeting Euro-V specifications for the Nigerian market and the larger region.
“In addition, it will produce propylene, an essential component for the petrochemical industry used in polypropylene-based plastics and packaging. This large complex will help in reducing Nigeria’s dependence on imported fuels and petrochemicals.”
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Axens’ Chairman and CEO Jean Sentenac said: “We are delighted to be part of this strategic project providing the most advanced technologies on the market that are energy-efficient and ensure the production of high-quality fuels and petrochemical intermediates.
“This state-of-the-art integrated complex will allow BUA Group to develop its refining and petrochemical capabilities in Nigeria and produce highly valuable products for the domestic market. It is a great pleasure and pride to partner with them to concur to develop the Nigerian economy and ensure the success of this strategic state of the art project”.
The refinery would be built using an undisclosed mix of debt and equity, with several developments and commercial banks in negotiations with BUA Group according to The Daily Times.
Axens beat the US company, Honeywell UOP, which got through to the final round, according to sources close to the bid.
“President Macron has given special determination and support to this project,” Rabiu told The Africa Report.
Rabiu has been made Chairman of the Macron-initiated Franco-Nigerian Investors’ Club.
About BUA Group
Established in 1988, BUA Group is one of Africa’s largest diversified groups operating out of Nigeria with its key interests in foods, mining, manufacturing, and infrastructure.
The Group’s investments span the following sectors: Cement, Sugar, Flour, Pasta, Steel, Rice, Real Estate, Logistics, Ports, and Terminals with a core focus on building local manufacturing capacity to generate employment, and provide high-quality products and develop the African continent.
About Axens
Axens is a group providing a complete range of solutions for the conversion of oil and biomass to cleaner fuels, the production, and purification of major petrochemical intermediates as well as all of natural gas’ treatment and conversion options.
The offer includes technologies, equipment, furnaces, modular units, catalysts, adsorbents, and related services. Axens is ideally positioned to cover the entire value chain, from feasibility study to unit start-up and follow-up throughout the entire unit cycle life. Axens is an IFP Group company.
Written by;
Ifunanya Ikueze
