Saudi King Approves Planned Multiple Oil Investment Pact with Nigeria

The King of Saudi Arabia, Salman bin Abdulaziz Al Saud and the Crown Prince, H.R.H. Mohammed bin Salman bin Abdulaziz Al Saud have endorsed a memorandum of understanding (MoU) being prepared by Nigeria and the Kingdom of Saudi Arabia to enable both countries engage in multiple aspects of oil and gas business.

Naija News Understands that  Saudi Minister of Energy, Industry and Mineral Resources, Khalid bin Abdulaziz Al-Falih confirmed the agreement with key interest in revamping  decrepit refineries in Warri, Port Harcourt and Kaduna; building of a brand new refinery; investment in Liquefied Natural Gas (LNG), as well as product supply trading in crude oil and refined products.

On Friday 22nd April, 2016 Mr. Kachikwu reported that $700m will be required to "fix" Nigeria's refinaries. But on Thursday 8th June, 2017 he said what will be needed to bring three refinaries to 100% production… https://t.co/mcT2aiawLk

— Hussaini Jibrin (@hussainijibrin) April 27, 2019

According to the information made available to Nigeria’s Ministry of Petroleum by from Saudi Minister of Energy, Industry and Mineral Resources, Khalid bin Abdulaziz Al-Falih  the partnership investment agreement would be signed with President Muhammadu Buhari, adding that the early draft of the MoU would be ready in the first week of May.

The ministry’s statement said the Saudi minister stated that his team would undertake the task of drafting an outline of the MoU in consonance with Nigeria and that it would consequently move through the bureaucratic channels of getting the requisite approvals and endorsements.

Nigeria’s governor at the Organisation of Petroleum Exporting Countries (OPEC), Dr. Omar Farouk and that of Saudi Arabia, Adeeb Al-Aama, have been nominated to fast track the process for the official endorsements and signing, the statement said.

Continuing efforts to overhaul refineries & save money on fuel imports. #Nigeria oil minister Emmanuel #Kachikwu notes early MoU with Saudi Arabia on an oil & gas partnership to build new refinery & investment into liquefied natural gas could be ready by May

— Rodney Gollo (@gollrrg) April 27, 2019

Naija News also learnt that the agreement would in principle open the doors for Nigeria to potentially benefit from Saudi Arabia’s and Saudi Aramco’s recent aggressive oil sector investments across the globe

It will be recalled that the idea of preparing and signing the MoU emanated when Al-Falih had a high-level bilateral meeting with Nigeria’s Minister of State for Petroleum Resources, Dr Emmanuel Ibe Kachikwu in Riyadh on Wednesday.

Kachikwu also  disclosed that Nigeria would leverage the huge success of Saudi Arabia in the industry, especially with regards to Saudi Aramco’s turnover of over $200 billion in the last year