Nigerian businessman Eruani Azibapu’s Azikel Refinery in Bayelsa State has reached the finishing stage, bringing the Niger Delta closer to having its first private refinery capable of producing petrol and aviation fuel.
The refinery, located in Yenagoa, has been redesigned to process 25,000 barrels of crude oil or condensate per day, representing an investment of about $1 billion, according to the President of Azikel group during a recent tour of the facility by the Nigerian Society of Engineers.
About 700 engineers and other personnel are currently working on the completion phase. Most of the workforce comprises young Bayelsans and other Nigerian engineers, supported by expatriate specialists.
Once operational, the refinery is expected to employ more than 3,000 people, while the project is reported to have already generated over 80,000 indirect jobs.
The Azikel facility is a full-slate hydro-skimming refinery, designed to process both crude oil and condensate into a range of petroleum products.
Its planned output includes:
- Premium Motor Spirit (petrol)
- Automotive Gas Oil (diesel)
- Aviation fuel
- Dual-purpose kerosene
- Heavy fuel oil
- Liquefied petroleum gas (LPG)
Azibapu said the refinery’s ability to process crude oil or condensate into petrol and aviation fuel distinguishes it from simpler topping plants, which primarily produce diesel.
He described Azikel as Nigeria’s second-largest full-slate refinery and said it is the only refinery in Africa designed to process condensate into a complete range of petroleum products.
The company has also announced plans to eventually expand the refinery’s capacity to 125,000 barrels per day.
The Bayelsa State branch of the Nigerian Society of Engineers commended the project after visiting the facility.
Its chairman, Mac Jokori, described the refinery as a significant milestone for Nigeria’s refining industry and said the facility met high engineering standards.
He said the refinery could serve as an engine of industrialisation and contribute to local capacity development and youth empowerment.
The engineering body also pledged support through technical collaboration, internships, mentorship, research partnerships and professional capacity building.
The refinery currently under construction is significantly larger than the facility originally approved by regulators.
The project was approved in 2015, during the administration of former President Muhammadu Buhari.
When Azikel Petroleum secured a $259 million debt financing agreement with Afreximbank in November 2023, the refinery was described as a 12,000-barrel-per-day hydro-skimming facility.
According to Azibapu, subsequent value engineering and redesign increased the planned capacity to 25,000 barrels per day, while the estimated investment rose to approximately $1 billion.
The company contracted American oil services firm McDermott for feasibility studies and construction work on the refinery.
Azibapu’s journey into the refining business followed an unconventional path.
Born in 1973 in what was then Rivers State, he trained as a medical doctor and worked at Westend Clinic and Ashford & Patrick Hospital before joining the Bayelsa State civil service as a medical officer.
He later moved into industrial medicine at Nigerian Agip Oil Company, the ENI subsidiary in Port Harcourt, and served as chief physician to Melford Okilo, the first civilian governor of the old Rivers State.
Azibapu subsequently served as Special Adviser on HIV/AIDS and Community Health and later became Bayelsa State Commissioner for Health.
He also received business training at London Business School and the Wharton School of the University of Pennsylvania.
Azikel Group was founded in 2008, initially building its business around sand dredging.
Azikel Dredging eventually became a major player in the sector, with the company expanding into aviation, agriculture and energy.
The company reportedly had revenues exceeding $80 million and employed more than 700 people by 2018 across its various businesses.
Today, the group operates through businesses including Azikel Dredging, Azikel Air, Azikel Power and Azikel Petroleum, with its headquarters in Bayelsa State and an office in Asokoro, Abuja.
Azibapu has continued to expand the group’s interests, with the refinery representing one of its biggest investments in Nigeria’s energy sector.
Despite the refinery reaching its finishing stage, Azikel has not announced a specific date for the commencement of operations.
When completed and commissioned, the facility is expected to strengthen petroleum-product supply in the Niger Delta, create jobs and support industrial and economic development in Bayelsa and the wider region.
