The $1 billion Azikel Refinery in Bayelsa State is approaching completion, with the facility expected to strengthen refining capacity and create thousands of jobs in the Niger Delta.

The refinery, owned by Nigerian businessman Eruani Azibapu through Azikel Group, has been redesigned to process 25,000 barrels of crude oil or condensate per day. The project was initially approved in 2015 with a smaller capacity.

About 700 engineers and other workers are currently involved in the final phase of construction. The company expects the refinery to employ more than 3,000 people when operations begin, while the project has already supported more than 80,000 indirect jobs, according to the company.

The facility is designed as a full-slate hydro-skimming refinery, allowing it to produce petrol, diesel, aviation fuel, kerosene, liquefied petroleum gas and other petroleum products. Unlike simpler topping plants, it is designed to process feedstock into a wider range of refined products.

Azibapu said the project had undergone several rounds of engineering modifications that increased its capacity from the 12,000 barrels-per-day facility described in a 2023 financing agreement with Afreximbank to its current 25,000 barrels-per-day design.

The refinery represents a significant increase from the original project plan, with its estimated investment now put at about $1 billion. American engineering and oil services company McDermott was engaged for feasibility and construction work.

The project is also expected to support industrial development in Bayelsa and provide opportunities for Nigerian engineers and other skilled workers. The Nigerian Society of Engineers has pledged technical support through training, internships, research and professional development.

Azikel plans to expand the refinery further in the future, with a proposed capacity of up to 125,000 barrels per day.

Despite the progress made on the facility, the company has not yet announced a specific date for the commencement of commercial operations.

The development adds to a growing wave of private refinery projects in Nigeria as the country seeks to increase domestic petroleum production, reduce dependence on imported refined products and expand its refining capacity.