L-R: Davide Pelizzola, Vice-President, Sub-Saharan Africa Region of Tecnimont SpA; Malam Mele Kyari, Group Managing Director of NNPC; and Engr. Ahmed Dikko, Managing Director of Port Harcourt Refining Company Limited Photo: NNPC

NNPC inks $1.5bn contract for rehabilitation of Port Harcourt Refinery

*The Nigerian National Petroleum Corporation has signed the $1.5billion EPCIC contract for the rehabilitation of Port Harcourt Refinery, noting it is set to award Warri, Kaduna Refineries rehab EPC June 2021

Isola Moses | ConsumerConnect

The drive by the Management of the Nigerian National Petroleum Corporation (NNPC) to boost in-country refining capacity was bolstered Tuesday, April 6 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.

Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division of NNPC, in a statement Tuesday said the rehabilitation project which has a completion timeline of  between 18 and 44 months under a three-phase arrangement, was awarded to Milan based Tecnimont SpA at US$1.5 billion, inclusive of VAT and other statutory payments.

Elated by the development in the downstream sector of the country’s economy, Malam Mele Kyari, Group Managing Director (GMD) of NNPC, described the PHRC rehabilitation project as a dream come true.

Kyari noted that the project is in line with President Muhammadu Buhari’s promise to the Nigerian people to make the refineries work.

The NNPC GMD restated that in arriving at the choice of Tecnimont SpA, the Corporation embarked on a transparent tender process which can withstand any forensic audit.

According to him, the NNPC is ready and open to answer any questions pertaining to the rehabilitation project.

The same transparent process has been emplaced for the rehabilitation of the Warri and Kaduna Refineries whose EPCIC contracts would be awarded in June 2021, Kyari said.

The statement said he further explained that the refinery rehabilitation exercise is very different from a routine Turn-Around Maintenance (TAM), as it would entail a total retrofitting of the plant with major part and equipment replaced with new ones.

Providing further insight into the project, Engr. Ahmed Dikko, Managing Director of Port Harcourt Refining Company Limited, explained that Phases 1 and 2 of the project would get the refinery ready to receive hydrocarbon.

Engr. Dikko stated that Phase 3 would focus on the start-up the refinery for operations, stressing that the entire work shall be delivered in 44 months from Tuesday.

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

Present at the ceremony are 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 among others.

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