Nigeria’s oil minister, Emmanuel Ibe Kachikwu said on Tuesday that Italian oil company Eni plans to build a crude refinery in Nigeria with capacity of 150,000 barrels a day through its Agip subsidiary, Reuters reports.

Nigeria has been seeking investment in the sector to reduce reliance on imported oil products that consume a large portion of the nation’s scarce foreign currency reserves. After years of neglect its existing, ageing refineries produce hardly any fuel.

“We reached an agreement that Agip will build a brand new refinery of 150,000 barrel capacity,” Kachikwu told reporters after meeting Eni executives in Abuja. A memorandum of understanding is being prepared, he added.