Nigeria's three refineries to be upgraded at a cost of $1.6billion
Its been reported that the Federal Government is to engage new contractors to upgrade and maintain Nigeria’s three refineries at the cost of $1.6billion, after it failed to secure the services of the original contractors that built the refineries to execute the jobs.
According to several news sources the Nigerian Government had previously set a 24-month target to engage the original contractors for the complete Turnaround Maintenance (TAM) of the refineries, which have a capacity to process 445,000 barrels of crude oil per day.
The refineries are the:
-Port Harcourt Refining Company, with an installed capacity of 210,000 barrels of crude oil per day;
-Kaduna Refining and Petrochemicals Company, with a production capacity of 110,000 barrels per day
-Warri Refining and Petrochemicals Company, with an installed capacity of 125,000 barrels per day.
Following the directives from the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, the immediate past Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Austen Oniwon, began negotiations with JGC/Tecnimont Consortium, the original contractors that built the Port Harcourt Refinery, for the rehabilitation of the refinery.
The rehabilitation of the Port Harcourt Refinery was scheduled to be followed by Kaduna and Warri, respectively.
The Minister of Petroleum, Alison-Madueke told a Senate Committee recently that the contract for the project would soon be signed any moment from now, attributing the failure of the earlier Turn-Around Maintenance and upgrade of the refineries to the negative travel advisory given by the Japanese authorities to JGC, the original builders of the Port Harcourt Refinery, which stopped them from coming for the upgrade and maintenance of the refinery.
She said: “With that hurdle surmounted, we have put in place a new plan complete with new schedules and timelines to bring the refineries back to life and get them to run at higher capacity. The maintenance and upgrade work will start with the Port Harcourt Refinery which has stayed the longest period without turn-around maintenance.”
She confirmed the cost of the maintenance and upgrade of the three refineries as $1.6 billion, adding if successful, the turnaround of the refineries would help the Federal Government save a large chunk of the huge funds spent on payment of subsidy on imported petroleum products.