The two companies have entered into agreements for the construction of the refinery, which is expected to process 107,000 barrel of crude every day.
The process to procure all the relevant licenses and permits necessary to set up and operate the refinery have started, reported Vanguard.
It is expected that the facility will take five years to complete and the first phase work will commence in 2014.
The plant will process oil from several wells in the Niger Delta basin and produce kerosene, jet fuel, diesel, premium motor spirit, PMS, motor oil, LPG, and lubricants.
