Saudi Arabia and Nigeria plan to draft a memorandum of understanding (MoU) for an oil and gas partnership, according to the Nigerian Petroleum Ministry, Reuters reports.
Despite being a top crude oil producer, Nigeria imports the majority of its fuel needs due to its decaying refineries. Therefore, the partnership with the kingdom will help construct new refineries and liquefied natural gas (LNG) facilities in Nigeria.
The draft of the MoU between the two countries will be ready at the beginning of May, according to the Nigerian ministry statement.
Moreover, Nigeria’s state oil company was in talks with different consortiums to refit its refineries which will enable the country to save billions of dollars spent on imports.
“Areas of interest will cover the existing refinery revamp, building a brand-new refinery, LNG investments and product supply trading in crude and refined products,” the ministry stated.
On the other hand, Saudi Energy Minister Khaled Al-Falih expressed the possibility of establishing a refinery in Nigeria, considering it the best hub to reach more African countries.