Petrolex invests $330m in Ogun oil city

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’Femi Asu

An indigenous integrated energy group, Petrolex Oil and Gas Limited, says it has invested over $330m towards the achievement of a mega oil city located in Ogun State.

The Chairman, Petrolex, Mr. Segun Adebutu, said the group had completed the first phase of the facility, comprising a tank farm of 300 million litre capacity, a residential quarters, army barracks, 30 loading gantries, and a 4,000 truck capacity trailer park with accommodation for drivers.

He said the mega city would also feature a refinery with a capacity of 250,000 barrels per day, a gas processing plant to produce 50,000 Liquefied Petroleum Gas cylinders and a lubricant plant.

 “This legacy investment of over $330m to date, as audited by the PwC, will be the largest products’ storage tank farm in sub-Saharan Africa and will create at least 2,000 jobs,” Adebutu said during a tour of the facility in Ibefun, Ogun State on Tuesday.

He said the construction of the refinery would cost about $3.5bn, with a lube plant estimated to cost $8.5m.

According to him, the Petrolex mega oil city is conceptualised to enjoy the distinction of housing some of the most advanced oil and gas infrastructure in Africa.

“This massive investment will make the company a one-stop energy provider not only in Nigeria but also in the sub-Sahara Africa,” the chairman said, adding that the company commenced the planning, design and development of the mega oil city about five years ago.

He said the company had acquired over 13,000 acres of prime land and currently concluding the negotiation of another 12,000 acres to make the city Africa’s largest petroleum products’ hub.

Adebutu said, “With a 300 million litre capacity facility, 30 loading gantries and a 4,000 truck capacity trailer park, the tank farm is connected to the Nigeria System 2B pipeline at Mosimi ensuring the supply and distribution of petroleum products all around the country.

He said with an expansion plan to increase the storage capacity, the oil city would also be home to a power plant to maximise value.

The chairman said, “Hopefully, by the time we’re done, local workers here will be at least 70/80 per cent indigenous. It has actually helped the economy of the town itself. It’s not just about direct employment; we’re setting up a city here. Petrolex has a unique sustainability model that includes comprehensive environment conservation and reforestation programme and a successful host community engagement framework.’’

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