The Ondo State government on Wednesday signed a memorandum of understanding with Crown Refinery and Petrochemical Ltd for the construction and management of a $500 million modular refinery.

Rotimi Akeredolu, the state governor, said the project is in furtherance of his administration’s resolve to make Ondo State attractive to investors.

He said the state is strategically positioned among the Niger Delta states and Lagos State, which is the nation’s economic nerve centre, to make all business minded investors reap bountifully on their investments in the state.

He commended the firm and assured them and their partners a second-to-none atmosphere in their business deals in Ondo State.

The MOU was signed by the Secretary to the State Government, Ifedayo Abegunde, and the Senior Special Assistant to the Governor on Energy and Mineral Resources, Femi Akarakiri, for the Ondo State government.

Kassim Adeleke, the CEO of Crown Refinery and Petrochemical Ltd, and the company secretary, Folake Marcus-Bello, signed the MOU on behalf of the company.

The refinery, according to the company, will have a capacity of 30,000 barrels per day of crude processing; 120,000 tons per annum of base oil; and 25,000 tons per annum of lubricant with supporting 50MW power plant.

The project is expected to be completed in 36 months.

Earlier, Mr Adeleke said his company had, in the past, approached some states for the establishment of the project but was not welcomed.

While fielding questions about the project, Mr Adeleke said his company’s core business is refining crude oil into premium petroleum products.

“We are in the business of manufacturing lubricants and specialized packaging for products to meet the needs of our valued clients.

“The refinery will be designed to process both imported paraffinic and Nigerian crude into finished petroleum products, oils and lubricants.”