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NNPCL, Daewoo Sign $741m Deal To Rehabilitate Kaduna Refinery

With the rehabilitation of the Port Harcourt Refinery completed, the Nigerian National Petroleum Company Limited (NNPCL) has shifted attention to the Kaduna Refinery & Petrochemical Company (KRPC) Limited as it yesterday signed an agreement with Daewoo Engineering & Construction Nigeria Limited for its repairs. Speaking at the ceremony in Abuja, NNPCL Executive Vice President, Downstream, Adeyemi Adetunji, said it was a great honour that they signed the maintenance service contract worth $741 million for the refinery. “This marks a milestone in the history of KRPC considering that the last Turn Around Maintenance (TAM) on the refinery occurred about (15) years ago,” Adetunji said. He noted that the project was framed after extensive engagement with Daewoo on the quick-fix strategy to repair and re-stream KRPC and operate it on a sustainable basis at a minimum capacity utilization of 60 per cent.

“This project shall be executed in three work packages as a Maintenance Services contract by Daewoo E&C Nigeria Limited at an estimated maximum cost ceiling of $740,669,600.00 with a duration of Twenty- One (21) months. “The quick-fix strategy guarantees the fastest route to restreaming Warri Refinery Petrochemical Company (WRPC) and KRPC for in-country production of refined petroleum products.

“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,” he said. He explained further that the plan will generate revenue, reduce demand for forex, supply raw materials to industries, create employment for Nigerians and ensure technology transfer, amongst other benefits. “The proposed quickfix initiative on KRPC is expected to restore it to a minimum of 60 per cent of its nameplate capacity by Q4 2024,” he added.

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He said NNPC Limited was using a combination of internally generated revenue and third-party financing to execute the repairs of the refineries. He added that post-rehabilitation of the three refineries, globally reputable operations and maintenance contractors shall be engaged to run the refinery safely, reliably, sustainably and profitably. He, however, implored total commitment from all staff in ensuring that the project is successfully executed, noting that over 200 million Nigerians are looking up to NNPC Limited to deliver on the mandate. He said the board and management of NNPC Limited were fully committed to providing all the required support to ensure that the refineries are fixed, adding that the rehabilitation of PHRC has progressed considerably. “The old refinery is currently at 64 per cent completion and the plant is expected back in operation in Q2 2023, while the entire PHRC Rehabilitation Project currently stands at about 59 per cent.

Source: newtelegraph

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