Yesterday, Daewoo and the Nigerian National Petroleum Company Limited (NNPC) yesterday signed a major $740.6 million deal. It for the maintenance of the Kaduna Refining and Petrochemical Company Limited (KRPC).
According to Mallam Mele Kyari, the Group Chief Executive Officer of the NNPC, that the deal was in “pursuit of the national oil firm’s statutory responsibility of ensuring energy security for the country.”
One of the factors for economic growth is independence in energy. To achieve this, Kyari argued that Nigeria’s refineries must be working. While he noted that the three refineries are down, the one in Port Harcourt will roar into life before June, Kyari said, Warri has also been scheduled for revamp while Kaduna was also getting the required attention. “We are hopeful that this year, we will have self-sufficiency in terms of gasoline supply,” he explained.
Also, the Executive Vice President, Downstream of the NNPC, Adeyemi Adetunji, “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 with a duration of 21 months.
“The quick-fix strategy guarantees the fastest route to re-streaming 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, 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,” he stated.
Also, he explained that the facility 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 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.
“Post rehabilitation of the three refineries, globally reputable Operations and Maintenance (O&M) contractors shall be engaged to run the refinery safely, reliably, sustainably and profitably,” he stated.
“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 stressed.