The Nigerian National Petroleum Company Limited on Thursday signed a deal with Daewoo for the maintenance of the Kaduna Refining and Petrochemical Company Limited (KRPC).
The contract sum for the deal is valued at $740.6m.
Speaking at the agreement signing event held at the NNPC Headquarters in Abuja, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated that the deal was part of the mandate given to the National Oil Company to ensure energy security for the country.
Kyari said that one of the key elements required for growth as a nation is energy sufficiency.
He noted that that there’s no way this can happen without the refineries fully functional and petroleum products made available.
The NNPC boss noted that he was conscious of the fact that the four refineries in three locations were currently down and undergoing some form of rehabilitation, with Port Harcourt currently on course to come on stream in the first half of this year.
According to him, Warri has also been scheduled for revamp while Kaduna was also getting the required attention to restore Nigeria’s capacity to complement the Dangote refinery.
He said, “We are hopeful that this year, we will have self-sufficiency in terms of gasoline supply.
He stated that while there are security issues in the country, it will in no way disturb the progress of work on the refinery site, urging the contractors to reach out for any help they might require.
In his comments, the Executive Vice President, Downstream of the NNPC, Adeyemi Adetunji, said the event marked a milestone in the history of KRPC considering that the last Turn Around Maintenance (TAM) on the refinery occurred about 15 years ago.
He stated that the 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 per cent.
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.
“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.
“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.
Adetunji called for total commitment from all staff in ensuring that the project is successfully executed since, according to him, 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 stressed.