NNPC, Daewoo sign &740m maintenance services deal to fix Kaduna refinery
February 3, 2023420 views0 comments
By Onome Amuge
The Nigerian National Petroleum Company (NNPC) Limited has signed a maintenance services agreement with Daewoo Engineering and Construction Nigeria Limited for the rehabilitation of the Kaduna Refining and Petrochemical Company Limited.
NNPC, in a twitter statement said the quick-fix repair of the refinery will be completed in three work packages at a maximum cost of $740.7 million over a 21-month period. The oil company also stated that the Kaduna refinery will be restored to a minimum of 60 percent of its nameplate capacity by the fourth quarter of 2024.
Speaking at the contract signing ceremony, Adeyemi Adetunji, downstream executive vice president of NNPCL, said that the quick-fix strategy guarantees the fastest route to restreaming the Warri Refining & Petrochemicals Company Limited (WRPC) and KRPC for in-country production of refined petroleum products.
According to Adetunji, restoring WRPC and KRPC back to operation will guarantee energy security for the country, and reduce dependence on imported petroleum products in view of near total dependence on the 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, amongst other benefits,” he said.
Adetunji further noted that the NNPC is using a combination of internally generated revenue and third-party financing to execute the refineries’ repairs.
He added that after the post-rehabilitation of the three refineries in Kaduna, Warri, and Port-Harcourt, globally reputable operations, and maintenance contractors would be engaged to run the refinery safely, reliably, sustainably, and profitably.
“Meanwhile, the rehabilitation of PHRC has progressed considerably. The old refinery is currently at 64 percent completion and the plant is expected back in operation in Q2 2023, while the entire PHRC rehabilitation project now stands at about 59 percent.
“On the other hand, WRPC Quick-fix Project has achieved 28 percent completion and is expected to be restreamed by the end of this year,” Adetunji confirmed.
The NNPC executive vice president also assured that the board and management of NNPC Limited are fully committed to providing all the required support to ensure that the refineries are repaired and back in operation on cost and schedule.