Ondo advances 500,000bpd refinery, FTZ projects

File: A refinery

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A new project vehicle, Sunshine Joint Venture Infrastructure Limited, has been formally incorporated to spearhead the development of the proposed 500,000 barrels-per-day refinery and the Free Trade Zone in Ondo State, marking a significant leap toward the realisation of the ambitious projects.

The joint venture partners announced the establishment of the company in a statement issued by its spokesperson, Wale Adekola, on Thursday, describing it as a decisive step that demonstrates the commitment and unity of the funding partners and the Ondo State Government.

Recall that The PUNCH reported last month that Ondo State’s proposed refinery and free trade zone project had entered a new implementation phase, after Backbone Infrastructure Nigeria Limited began technical engagements and site assessments in the Ilaje Local Government Area.

The move comes on the heels of Backbone Infrastructure Ltd’s recent disclosure that it has secured more than $50bn in funding commitments for a 500,000bpd refinery and the Sunshine Free Trade Zone in Ilaje, Ondo State.

The funding was facilitated through a joint venture agreement between BINL and NEFEX Holdings Limited of Canada, marking one of the largest single private sector investment packages targeted at Nigeria’s downstream oil and gas industry.

According to the statement, the new company will now serve as the primary vehicle for implementing the various Memoranda of Understanding already signed with the state through the Ondo State Investment Promotion Agency.

The statement read, “In furtherance of our commitment to the execution of these two major projects, Refinery and Free Trade Zone, in conjunction with the Ondo State Government, the joint partners have taken another giant step by incorporating a joint company, namely, SUNSHINE JOINT VENTURE INFRASTRUCTURE LIMITED, as the vehicle to be used in executing these projects.

“This move reinforces the sincerity of purpose and total commitment of the funding partners to move ahead together as a united front.”

To accelerate progress, key officials of the JV held a strategic meeting in Dubai, where they concluded funding arrangements and agreed on modalities for the commencement of preliminary on-site activities. These include preparations for groundbreaking ceremonies and early community engagement efforts.

The Dubai meeting had in attendance Messrs Salehi Farhad, Zaheri Navid, Eghbal Kordjamshidi, Saheed Zaheri, Dr Stephen Dike, Henry Owonka, and Mrs Namvar Maryam—senior figures involved in driving the refinery and FTZ initiatives.

Adekola disclosed that plans had been finalised to mobilise contractors who would collaborate with host communities to develop an information centre, architectural models, and essential project support structures. He added that ONDIPA was working closely with communities that may be affected to ensure a smooth relocation process and maintain peaceful relations.

The JV partners reiterated their commitment to working with the state government to reshape Ondo’s infrastructural and economic landscape.

The refinery and Free Trade Zone, expected to rank among the largest industrial developments in the state’s history, are projected to attract significant investments, generate thousands of jobs, expand export opportunities, and position Ondo as a strategic energy and manufacturing hub.

A business, investment, infrastructure and property correspondent currently with The PUNCH, Aina is a media professional with over three years experience

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