Tuesday, July 26, 2016 9:55 pm
By Abubakar Hashim/Monrovia
The long-awaited Bankable Feasibility Study BFS contract by ECOWAS Refinery Liberia Limited, ERLL, for the development of a 100 kbbl per day refinery, located in Buchanan, Liberia, was recently signed by ERLL with international financial and institutional investors in Houston, Texas. The exercise had inputs from the Liberia Investment Commission, LIC, and the Liberia Petroleum Refining Company, LPRC.
The international conglomerates include Kellog, Brown and Root, KBR, an American engineering giant; Siemens, a German engineering world class firm; China Petroleum, a leading Chinese petroleum conglomerate and Bajaj Group, a renowned Indian company.
Under the terms of the contract, Kellog Brown and Root, KBR, will provide a market study, refinery configuration development and Environmental, Social and Health Impact Assessment (ESHIA) study. This work is expected to be performed over five months with KBR configuring the optimal refinery configuration and developing the financial model,which includes capital and operational cost estimates, to be supported by China Huanqiu Contracting and Engineering Corporation (HQC), a subsidiary of China National Petroleum Corporation (CNPC). HQC are advising in tailoring the BFS product for potential future phase of Chinese investment.
KBR is to assist ERLL in the formative stages of this project, bringing together the knowledge and capabilities of KBR approach.
During the signing ceremony in the United States, Chief Tony Izubundu Chinyere, Executive Vice Chairman & Founder of ERLL said: “This is an important milestone in the progress and development of the refinery project for Liberia. With the engagement of KBR for the Bankable Feasibility Study, a solid basis for the project will be established.”
Revenues associated with this contract, which were not disclosed, will be booked into backlog for the Technology & Consulting business segment in the second quarter of 2016.
KBR is a global technology, engineering, procurement and construction company, serving the hydrocarbons and government services industries, employing approximately 22,000 people worldwide, with customers in more than 80 countries and operations in 40 countries. It is widely involved in offshore oil and gas; onshore oil and gas; Refining; Petrochemicals; Chemical and Industrial Services.
Speaking to the NEWS magazine, in an upbeat mood, Chief Tony revealed that the refinery project will revolutionize the investment landscape of Liberia, adding that it will be the ever lasting memorable legacy of President Ellen Johnson-Sirleaf.
With modalities for the multi million dollar project in full gear, the ECOWAS oil refinery Liberia Limited Project will, evidently, turn arround the Liberian economy, making it to be the hub for refined petroleum products for West African markets and beyond.