The Federal Government yesterday signed $4.5 billion (equivalent of N693 billion) Memorandum of Understanding (MoU) with an American and Nigerian Joint Venture Group, Vulcan Petroleum Resources Limited and Petroleum Refining and Strategic Reserve Limited for the construction of six modular refineries with combined capacity of 180,000 barrels per day.

Two of the refineries with 30,000 to 60,000 barrels per day will be located in areas where there are crude oil pipelines in collaboration with the Nigerian National Petroleum Corporation and will be completed within 12 months.

The Minister of Trade and Investment, Olusegun Aganga, signed the contracts on behalf of the Federal Government, while Vice-President/Director, Vulcan Petroleum Resources Limited, Jim Mansfield and the Chairman, Petroleum Refining and Strategic Reserve Limited, Chief Edozie Njoku, signed on behalf of their companies respectively.

Aganga said his ministry would work together with the Ministry of Petroleum Resources and the NNPC to ensure the actualization of the projects.

The government has signed a joint MoU with the U.S for the construction of six refineries with combined capacity of 180,000 barrels per day.

Two of the refineries with 30,000 to 60,000 barrels per day will be located in areas where there are crude oil pipelines.