The Nigerian National Petroleum Company Limited and Daewoo Engineering and Construction Nigeria Limited, on Thursday, signed a contract of $740.67m (N341.48bn as at Thursday’s official exchange rate of N461.04/$) for the rehabilitation of Kaduna Refining and Petrochemical Company Limited.
Both parties signed the deal at the Abuja headquarters of NNPC, as the Executive Vice President, Downstream, of the oil national firm, Adeyemi Adetunji, said the exercise would take 21 months.
He said the quick-fix strategy would see to the repairs and re-streaming of KRPC, as well as ensure its operation on a sustainable basis at a minimum capacity utilisation of 60 per cent.
He said the contract marked a milestone in the history of KRPC, considering the fact that the last Turn Around Maintenance on the refinery occurred about 15 years ago, and that the project was framed after extensive engagement with Daewoo
“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, with a duration of 21 months,” Adetunji stated.
He added, “The quick-fix strategy guarantees the fastest route to re-streaming WRPC (Warri Refining and Petrochemical Company) and KRPC for in-country production of refined petroleum products.
“Restoring WRPC and KRPC 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.”
“The proposed quick-fix initiative on KRPC is expected to restore it to a minimum of 60 per cent of its nameplate capacity by Q4 2024. NNPC Limited is using a combination of Internally Generated Revenue and third party financing to execute the repairs of the refineries,” he stated.
Meanwhile, Adetunji noted that the rehabilitation of the Port Harcourt Refining Company had progressed considerably.
He said, “The old refinery is currently al 64 per cent completed and the plant is expected back in operation in Q2 2023, while the entre PHRC rehabilitation project currently stands at about 59 per cent.
“On the other hand, WRPC quick-fix project has achieved 28 per cent completion and is expected to be re-streamed by the end of this year.”
On his part, the Group Chief Executive Officer, NNPC, Mele Kyari, said Nigeria should be self sufficient this year with respect to the domestic production of Premium Motor Spirit, popularly called petrol.
The Korean Ambassador to Nigeria, who led the Daewoo team, Young Chae, said their was great potential in the economic cooperation between Nigeria and Korea – home country of Daewoo, as he promised that the international firm would deliver.