A private firm, the Crown Refinery and Petrochemical Limited, on Wednesday, signed a Memorandum of Understanding with the Ondo State Government on the establishment of a $500m modular refinery in the state.
The MoU was signed by the Secretary to the State Government, Mr Sunday Abegunde, and the representatives of the company.
The company’s major business is the refining of crude oil into petroleum products, and it had expressed its readiness to do business in Ondo State.
Receiving the signed documents from the SSG, the Governor, Mr Rotimi Akeredolu, said the government would create an enabling environment to ensure the successful completion of the project.
According to the governor, the door of the state is open to all genuine investors to do business with it, and his administration is committed to making the state a business hub for investors.
He said, “Ondo State is safe for investors; we will do everything to ensure that this project is successful.
“Ondo State is strategically positioned among the Niger Delta states and Lagos State, which is the nation’s economic nerve centre, to make all business-minded investors reap bountifully on their investments in the state.”
He commended Crown Refinery and Petrochemical for coming on board at this time to be a worthy partner with the government and assured the company and its partners a second-to-none atmosphere for their business deals in the state.
Earlier, the Chief Executive Officer of Crown Refinery and Petrochemical, Mr Kassim Adeleke, said the company had, before now, approached some states for the establishment of the project but was not welcomed.
He said in Ondo State, he found professionalism, swift decision-making, friendly communities and passion, such that in less than one year of opening talks with the state government, the coast had been clear for the commencement of the landmark project.
According to him, the proposed project will have an initial capacity to refine about 30,000 barrels per stream day but would later be scaled to 60,000 bpsd within the next five years, and it is expected to be completed within 36 months.
Adeleye said, “We are going into the business of refining crude oil; the government of Ondo State would provide the enabling environment and incentives to support us as we actualise this vital investment.
“Apart from the project having the capacity to refine crude oil, it will also be producing 120,000 tons of base oil and 25,000 tons of lubrication oil on a yearly basis.
“The company will also be providing several infrastructural projects in the states and would create about 2,000 direct and indirect employment opportunities for indigenes of the state.”
Source: Peter Dada, Punch.