NNPC Engages Korean Coy On N341bn Kaduna Refinery Repair

The Nigerian National Petroleum Company Ltd (NNPCL) has signed an agreement with Daewoo Engineering and Construction Nigeria Ltd for maintenance services for the quick fix repairs of the Kaduna refinery, 15 years after its last maintenance.

The contract was signed on Thursday at the NNPC Towers, Abuja, between Daewoo and NNPC’s Kaduna Refining and Petrochemical Company Ltd (KRPC).

According to the NNPCL, the estimated maximum cost of the project is $740.669 million (about N341.1 billion) with a duration of 21 months after which a minimum capacity utilisation of 60 per cent will be restored by the fourth quarter of 2024.

Giving further details, the Executive Vice President Upstream of NNPC, Adeyemi Adetunji, said: “The project shall be executed in three work packages as a maintenance services contract by Daewoo E&C as the quick-fix strategy guarantees the fastest route to restreaming WRPC and KRPC for in-country production of refined petroleum products.

“Restoring Warri and Kaduna refineries back to operation will guarantee energy security for the country, reduce dependence on imported petroleum products in view of near total dependence on supply of imported petroleum products and the impact the ongoing Russia-Ukraine war is having on global supply.

Also, this will generate revenue, reduce demand for forex, supply raw materials to industries, create employment for Nigerians and ensure technology transfer, among other benefits,” he said

The Group Chief Executive Officer of NNPC, Mele Kyari, said Nigeria is accelerating efforts towards energy sufficiency and the only way it can be achieved is to ensure local refining which is why the company conceived the idea of the project.

“The rehabilitations of the Port Harcourt Refining and Petrochemical Company Ltd and that of Warri have progressed and are expected to be back on steam soon,” Kyari said.

The old PHRC refinery is at 64% completed and ready for operation in the second quarter this year while the entire plant is at 59% rehabilitation level. That of Warri is at 28% and will be delivered by year end, he explained.

In his comment, the CEO of Daewoo, Baek Jeong-wan, assured NNPCL of the company’s commitment in delivering the project within the stipulated time.

SOURCE: DAILY TRUST