NNPC Signs $1.5bn PH Refinery Rehab

99

The drive by the Management of the Nigerian National Petroleum Corporation (NNPC) to boost in-country refining capacity was bolstered Tuesday with the signing of the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract for the rehabilitation of the 210,000 barrels per day capacity Port Harcourt Refinery in Alesa-Eleme, Rivers State.

The rehabilitation project which generated criticisms from several quarters has a completion timeline of between 18 and 44 months under a three-phase arrangement was awarded to Milan based Tecnimont SpA at a lump sum contract price of US$1.5 billion, inclusive of VAT and other statutory payments.

An elated Group Managing Director of the NNPC, Mele Kyari, described the PHRC rehabilitation project as a dream come true, noting that the project was in line with President Muhammadu Buhari’s promise to the Nigerian people to make the refineries work.

Tecnimont SpA, the Corporation emerged from a transparent tender process that can withstand any forensic audit, and the corporation will employ the same transparent process for the rehabilitation of the Warri and Kaduna Refineries whose EPCIC contracts to be awarded in June 2021.

The GMD explained that the rehabilitation exercise was very different from a routine Turn-Around Maintenance as it would entail a total retrofitting of the plant with major part and equipment replaced with new ones.

Managing Director of Port Harcourt Refining Company Limited, Engr. Ahmed Dikko, providing further insight into the project, explained that Phases 1 and 2 of the project would get the refinery ready to receive hydrocarbon, while Phase 3 will focus on the start-up the refinery for operation, stressing that the entire work shall be delivered in 44 months from today.

Vice President, Sub-Saharan Africa Region of Tecnimont SpA, Davide Pelizzola, pledged the readiness of his company to work assiduously with the NNPC to comply with the terms and obligations of the contract.

The signing ceremony of the PHRC rehabilitation project was witnessed by the Nigeria Extractive Industries Transparency Initiative (NEITI), Infrastructure Concession Regulatory Commission (ICRC), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers NUPENG amongst others

1 Comment

Comments are closed.