FESTUS OKOROMADU
The Nigerian National Petroleum Company (NNPC) Limited on Thursday rekindled the hope of Nigeria’s return to local refining of its crude oil as it signed a contractual agreement with Daewoo Engineering & Construction Nigeria Limited for the repair and re-stream of the Kaduna Refinery & Petrochemical Company Limited.
The agreement tagged, “maintenance services for Quick-Fix repairs of KRPC,” is expected to ensure that the 110,000 barrel per day capacity refinery operates on a sustainable basis at a minimum capacity utilization of 60 percent with target completion of 21 months.
Speaking at the signing ceremony held at the NNPC Tower in Abuja on Thursday, Executive Vice President, Downstream, NNPCL, Adeyemi Adetunji said the initiative is coming 15 years after the last Turn Around Maintenance on the refinery.
He also said the contract which is estimated at a maximum cost ceiling of $740,669,600:00 will be executed in three work packages with duration of 21 months.
According to him, the quick-fix strategy adopted ensures the 110,000 barrel per stream day capacity refinery operates on a sustainable basis at a minimum capacity utilization of 60%.
Elaborating on the rationale behind the contract strategy, Adeyemi said, “This 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 percent.
“The 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 duration of 21 months.
“The quick-fix strategy guarantees the fastest route to restreaming WRPC and KRPC for in-country production of refined petroleum products.”
On the enormous benefits expected from the revival of the national assets, Adeyemi said, “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.
“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.
“The proposed quick-fix initiative on KRPC is expected to restore it to a minimum of 60% of its nameplate capacity Q4 2024.”
On how the funds for the project would be source, the EVP downstream said, “NNPC Limited is using a combination of internally generated revenue and third party financing to execute the repair of the Refineries.”
Adeyemi further assured Nigerians that upon completion of the rehabilitation of the three refineries, globally reputable Operations and Maintenance (Q&O) contractors shall be engaged to run the refinery safely, reliably, sustainably and profitably.
Also speaking, Chief Execute, NNPCL, Mele Kyari charged the handlers of the project to be totally committed to ensuring successfully execution, stressing that over 200 million Nigerians are looking up to NNPC Limited to deliver on this mandate.
“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,” he said.
On status of the other refineries under rehabilitation, he said, “Rehabilitation of Port Harcourt Refinery & Petrochemical Company (PHRC) has progressed considerably. The old refinery is currently at 64% completion and the plant is expected back in operation in Q2 2023, while the entire PHRC Rehabilitation Project currently stands at about 59%.
“On the other hand, The Warri Refinery & Petrochemical Company (WRPC) Quick-Fix Project has achieved 28% completion and is expected to be restreamed by the end of this year.”
Also speaking the COO Plant Division, Daewoo E&C Nigeria, Cho Seung IL, assured NNPCL of the company’s commitment to execution of the project in compliance with the terms and conditions employed.
He described the project as a great breakthrough in his activity in the Nigeria economy.
“Before now our main focus and operation has been in the coastal areas of Rivers, Bayelsa, Delta States, this a new focus,” he said.
The event was witnessed by the Korean Ambassador, Kim Young Chae, Ambassador Nicholas A. Ella (Director at Korean Embassy) and the Economic Counsel, Choi Jungwon as well as a team of delegate of Daewoo E&C Nigeria.
