Eight MOAs signed by 4 Companies to boost Oil and Gas Infrastructure in Nigeria

Nigeria is known for its oil production boosting the country’s economy. To help advance the Oil and Gas sector, it is important that required infrastructures be made available. In view of this, Chongqing Construction Engineering Group (CCEGC, Oilserv, Tianjin Energy, and Alpha Group has come together to sign eight multi-billion dollar memorandum of agreements (MOAs) to develop Nigeria’s Oil and Gas Infrastructure.

The agreements set the stage for jointly developing, financing, and constructing several important and sensitive projects including crude oil and gas pipelines, oil refineries, port, highways, and railways across Nigeria. According to reports, Alpha and several leading companies are already developing the Gas Revolution Industrial Park (GRIP) in Ogidigben, Delta State and Oilserv has partially completed the biggest pipeline project in Nigeria (East-West Gas Pipeline OB3) which is a 48inch pipeline project that is expected to carry gas to various power plants in the country.

The joint project signed by top management of these companies signifies strength and a key step to act as a roadmap for many other companies to collaborate for infrastructural development. According to the agreements, the four companies will work together to enhance cooperation including co-financing – at strategic and technical levels on the basis of complementary value added, corporate strengths and comparative advantages, and mutual benefits.

The eight agreements by the four companies were signed in the presence senior members of the Industrial and Commercial bank of China (ICBC), and Standard Bank of South Africa who are known to be the financiers of the project. Key steps following this activity includes the preparation of formal proposals by the four companies to present to responsible authorities in Nigeria and also commencing feasibility studies of the projects with authorities, and other key stakeholders including but not restricted to: Nigerian Port Authority, Nigeria Export Processing Zones Authority, and Federal Ministry of Transportation.

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