The Nigerian National Petroleum Company Limited (NNPC) and Daewoo Engineering and Construction Nigeria Limited signed a contract on Thursday worth $740.67 million (N341.48 billion at the official exchange rate of N461.04 per dollar). The agreement, signed at NNPC’s headquarters in Abuja, covers the rehabilitation of the Kaduna Refining and Petrochemical Company Limited (KRPC) and is expected to take 21 months.
Adeyemi Adetunji, Executive Vice President, Downstream at NNPC, described the “quick‑fix” strategy as a comprehensive repair and re‑streaming plan that will enable KRPC to operate sustainably at a minimum capacity utilisation of 60 percent. He noted that this contract marks a milestone for KRPC, whose last turnaround maintenance was completed about 15 years ago, and that the project was shaped after extensive engagement with Daewoo. “The project will be executed in three work packages as a maintenance services contract by Daewoo E&C Nigeria Limited, with an estimated maximum cost ceiling of $740,669,600 and a duration of 21 months,” he said.
Adetunji added that the quick‑fix strategy provides the fastest route to re‑streaming both the Warri Refining and Petrochemical Company (WRPC) and KRPC, thereby restoring in‑country production of refined petroleum products. “Restoring WRPC and KRPC will guarantee energy security for the country, reduce dependence on imported petroleum products, and mitigate the impact of the Russia‑Ukraine war on global supply,” he explained. The initiative is expected to bring KRPC to at least 60 percent of its name‑plate capacity by the fourth quarter of 2024. NNPC will finance the repairs using a combination of internally generated revenue and third‑party financing.
Adetunji also updated progress on other refinery projects. The rehabilitation of the Port Harcourt Refining Company (PHRC) is 64 percent complete, with the old refinery slated to resume operations in Q2 2023, while the entire PHRC rehabilitation project stands at about 59 percent. The WRPC quick‑fix project has reached 28 percent completion and is expected to be re‑streamed by the end of the year.
Group Chief Executive Officer of NNPC, Mele Kyari, said Nigeria aims to achieve self‑sufficiency in domestic production of Premium Motor Spirit (petrol) this year. Young Chae, the Korean Ambassador to Nigeria who led the Daewoo delegation, highlighted the strong potential for economic cooperation between Nigeria and Korea and pledged that Daewoo would deliver on its commitments.
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