Azikel Refinery in Bayelsa Enters Final Stage, Set to Process 25,000 Barrels Per Day
By Aboki Forex —
Azikel Refinery in Yenagoa, Bayelsa State has entered its final construction stage, with about 700 engineers and workers currently on site. The $1 billion facility will process 25,000 barrels of crude oil or condensate per day.
Refinery capacity and products
The refinery is designed as a full-slate hydro-skimming plant. It will produce premium motor spirit, diesel, aviation fuel, kerosene, liquefied petroleum gas and other petroleum products from crude oil or condensate. Azibapu Eruani, president of Azikel Group, disclosed the development during a recent tour of the complex by members of the Nigerian Society of Engineers.
Eruani described Azikel as Nigeria's second-largest full-slate refinery. He said it is the only refinery in Africa designed to process condensate into a complete range of products. The ability to convert crude oil or condensate into petrol and aviation fuel is a major feature of the refinery.
Workforce and jobs
About 700 engineers and other personnel are working on the project. Most of the workforce comprises young Bayelsans and Nigerian engineers alongside expatriate specialists. Azikel said the refinery is expected to employ more than 3,000 people when operational. The project has already generated more than 80,000 indirect jobs, according to Billionaires.Africa.
Mac Jokori, chairman of the Nigerian Society of Engineers, Bayelsa branch, described the facility as a major milestone for Nigeria's refining industry. Jokori said the refinery had complied with high engineering standards and would contribute to industrialisation, local capacity development and employment opportunities for young Nigerians.
Approval and funding history
The project received approval in 2015 under former President Muhammadu Buhari. In November 2023, Azikel Petroleum signed a $259 million debt funding agreement with the African Export-Import Bank for a 12,000-barrel-per-day hydro-skimming refinery. However, Eruani said the project subsequently underwent enhanced value engineering and redesign, increasing its capacity to 25,000 barrels per day.
“The Azikel Refinery licensed by former President Muhammadu Buhari in 2015 has now gone through several enhanced value engineering and redesign to a 25,000 barrels per day capacity. It is now a $1 billion investment,” Eruani said. Azikel Petroleum contracted US oil services company McDermott for feasibility studies and construction work on the facility.
Expansion plans
The Guardian reports that the company plans to expand the refinery's capacity to 125,000 barrels per day in the future. In a related development, Clarivo Oil and Gas Ltd has announced plans to construct a refinery in Calabar. Obidike Chukwuebuka, speaking to journalists in Calabar, said the proposed facility will be developed in multiple phases and feature state-of-the-art technologies. The company projects the refinery will come online within about five years, subject to regulatory approvals.
For Nigeria, the completion of Azikel Refinery adds to domestic refining capacity. That means less reliance on imported petroleum products and reduced pressure on the naira from fuel import bills. It also opens up more industrial and employment opportunities in the Niger Delta.