NNPC GMD Mele Kyari
FeaturedHighlightOil & GasTrending Story

NNPC boss justifies FG’s $1.5bn for Port Harcourt refinery rehabilitation

276

 

By Ajuma Edwina Ameh

Amid controversies by some Nigerians on the $1.5 billion for the rehabilitation of Port Harcourt refinery, the Nigerian National Petroleum Corporation (NNPC) has explained why the Federal Government is spending the huge sum.

The Group Managing Director of NNPC, Mallam Mele Kyari, disclosed that the funds approved for the 210,000 barrels per day capacity refinery was for complete rehabilitation and not Turn-Around Maintenance (TAM).

“lt is a worthy undertaking embarked upon after diligent consideration and in strict adherence to industry best standards,” he said.

Kyari told reporters at the NNPC Towers, Abuja on Monday that in terms of outlook and job scoping, the rehabilitation project is different from the routine TAM which was last carried out on the refinery 21 years ago.

Kyari explained that unlike TAM which should normally be executed every two years, but was neglected for many years, the rehabilitation project would involve comprehensive repairs of the plant with significant replacement of critical equipment and long lead items, to ensure the integrity of the plant on the long term.

On how to finance the project, the NNPC boss said that African Export-Import Bank (Afreximbank), as a reliable lender, has agreed to raise $1billion towards the rehabilitation project, arguing that a credible and capable lender like Afreximbank would never agree to put such huge amount of money where there would be no value.

He, however, dismissed the contention by critics that the $1.5bn approved for the rehabilitation of the Port Harcourt Refinery was enough to build a brand new refinery, stressing that a new refinery would cost the nation between $7bn and $12bn and that such funds were not available now.

According to Kyari, the corporation observed an unprecedented level of transparency and due diligence in arriving at the decision to award the Engineering, Procurement, and Construction (EPC) contract to Tecnimont spA. of Milan, Italy, after a competitive bidding process, which consists of a governance structure and tender process.

He said the process included key independent external stakeholders such as the Ministry of Finance, Nigeria Extractive Industry Transparency Initiative (NEITI), Infrastructure Concession Regulatory Commission (ICRC), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

On the choice of Tecnimont SpA as the contractor to handle the project, Kyari explained that the company is a representative of the Original Refinery Builder (ORB) and is one of the top 10 global Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contractor in refineries, adding that it has requisite experience in similar jobs across the globe.

He said the National Engineering and Technical Company (NETCO) and Kellogg, Brown & Root (KBR) and are acting as NNPC Engineering Consultants to the project with support from Wood Mackenzie to ensure that the project is delivered on schedule, within budget and at the right quality.

 

Leave a comment

Related Articles

Nigeria’s Adekeye emerges chairperson, APPO Nigeria’s directors training institute

Mrs. Folashade Adekeye has emerged as the Chairperson, Forum of the Directors...

South African police continue senseless killing of Nigerians, another Nigerian pepper-sprayed, wasted

The South African Police continued their senseless killing of Nigerians in that...

Nigeria to stop petrol importation in June – Dangote

The Chairman of the Dangote Group, Alhaji Aliko Dangote, has said that...

NNPC Ltd. partners Nasarawa govt on oil, gas development

The Nigerian National Petroleum Company Limited (NNPC Ltd) has said it is...

NCC suspends issuance of virtual operators’ licenses

The Nigerian Communication Commission (NCC) has notified stakeholders in the communications industry...

Tinubu approves N3.3trn to defray power sector debts

Determined to end incessant power outages in the country, President Bola Tinubu...

West Africa must unite to defeat terrorism, human trafficking, says Tinubu

President Bola Tinubu on Thursday received President Bassirou Diomaye Faye of Senegal...

Breaking: Emirates Airlines to resume operations in Nigeria Oct. 1

Emirates Airlines says it plans to resume operations in Nigeria on October...

FG raked in N318.5bn revenue in Q1 of 2024 – Accountant-General

The Federal Government recorded a total revenue inflow of N318.5 billion in...

Senate approves Tinubu’s request of $500m loan for BPE

The Senate has approved President Bola Tinubu’s $500 million loan request to...

Execute only those who steal N1 trillion and above – Sen. Ndume

The Chief Whip of the Senate, Sen. Ali Ndume, has said that...

Amid probe threat: Five commissioners quit Rivers government

Following a threat by Gov. Siminalayi Fubara to probe the administration of...

International Day of Families: “Embracing Diversity, Strengthening Families”

The United Nations (UN) continues to assert that the family constitutes the...

Workout Essentials: What Exercises should you do to tone some parts of your body?

I do know for sure that most of us have a desire...

Printing of N684m new naira notes charge: Court slams fresh N300m bail on Emefiele

An Abuja Federal High Court granted a fresh N300 million bail to...

Again, Emefiele arraigned, faces fresh charge of spending N18.96bln to print N684.5m new naira notes

A former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele,...

Horny secondary school teacher rapes primary school pupil, jailed for life

For raping a seven-year-old primary school pupil, Ojo Ezekiel, a 47-year-old secondary...

Cut down profligacy, wastages to fund free education, varsity dons urge FG

In spite of the economic problems and the huge debt burden that...

Nigerian, Abodunde, who killed wife with skateboard in London bags life sentence

Nigerian Olubunmi Abodunde, who killed his wife,Taiwo with a skateboard and attributed...