A United States-based firm, Nevada Petroleum Resources Limited, has entered into a Memorandum of Understanding (MoU), with Abia State Government, to build a refinery in the state at a cost of $100 million, with capacity to refine 20,000 barrels per day.

The MOU, which was sealed at Tampa, Florida, U.S.A., involved the state Governor, Theodore Orji, who signed on behalf of government, while Kalu Onyioha, Executive Vice President, signed on behalf of the company.

A statement issued by the governor's Chief Press Secretary, Mr Sam Hart, said the refinery was expected to come on stream within 24 months, after the commencement of work on the project, and would be sited in the oil producing area of Abia.

Speaking after the signing ceremony, Orji said while Abia State is desirous of entering into partnership with private organizations for the development of the state, the state would no longer enter into partnership with companies whose background and level of seriousness could not be guaranteed.

He said the MoU would have been signed in April 2008, when the company initially indicated interest to commence the project, pointing out that the delay was to enable government carry out investigations to ascertain that the company had the capacity to deliver on the project.

In his speech, Onyioha said the company chose Abia State because of the economic viability of citing the refinery in an oil producing location within the South-east zone, as the target of marketing the product.

He expressed the confidence that with the assistance of the technical partners already engaged by his company, the refinery would be actualised on schedule as, according to him, the governor has shown strong commitment to provide every necessary support for the actualization of the project.


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