A $740.67m contract deal was, on Thursday signed by the Nigerian National Petroleum Company Limited and Daewoo Engineering and Construction Nigeria Limited for the revamping of Kaduna refinery.
Investors King gathered that the reconstruction of the Kaduna Refining and Petrochemical Company Limited is projected to be completed in 21 months.
The deal was signed by both companies at the headquarters of Nigerian National Petroleum Company (NNPC) in Abuja.
Investors King reports that the contract deal is a remarkable one in the history of KRPC as the last major intervention at the refinery took place about 15 years ago.
The Nigerian National Petroleum Company, Executive Vice President, Adeyemi Adetunji noted that the quick-fix strategy employed will ensure the rejigging of the refinery operations.
Adetunji said that at least, the Kaduna Refining and Petrochemical Company should deliver at a stable minimum capacity of 60 percent.
“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.
“The proposed quick-fix initiative on KRPC is expected to restore it to a minimum of 60 percent 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 explained.
Speaking on other refinery constructions in the country, Adetunji said the Port Harcourt Refining Company rehabilitation is moving well as the entire project is 59 percent complete and the old refinery is presently at 64 percent while its plant is expected to commence operation in the second quarter of 2023.
For Warri Refining and Petrochemical Company, its rehabilitation project is at 28 percent and is expected to be re-streamed before the end of 2023.
“The quick-fix strategy guarantees the fastest route to re-streaming Warri Refining and Petrochemical Company (WRPC) and Kaduna Refining and Petrochemical Company (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 vice president said.
In his speech, the Group Chief Executive Officer, NNPC, Mele Kyari, projected that with the massive projects embarked on to revamp the refineries in the country, there should be massive domestic production of Premium Motor Spirit, known as petrol and that Nigeria should be self-sufficient before the end of the year.
The Korean Ambassador to Nigeria, who led the Daewoo delegation, Young Chae lauded the economic collaboration between Nigeria and Korea (home country of Daewoo)
He assured that the international construction company will satisfactorily deliver.