Refineries Repairs: NNPC Board to take final investment decision in two weeks — Kachikwu

The Board of the will, in the next two weeks, take a final decision on proceeding with government’s plan to rehabilitate the country’s refineries, , , has disclosed.

Mr Kachikwu, who spoke with Bloomberg in Vienna on the side-lines of the 175th meeting of the Organization of Petroleum Exporting Countries () on Thursday, said the refineries rehabilitation plan has not progressed as fast as government would have wanted.

“We have not done as well as we should. We expected that by now we should have started the actual construction work. But, negotiations with the financiers and investors is taking longer than we thought,” he said.

“But, the NNPC Board, in its last meeting, took a position that by December 15 we should take a final decision whether we are going forward or not,” he added.

The minister however confirmed the general opinion of members of the board and government was for the plan to go forward with some minor adjustments in the terms earlier set out.

He expressed optimism that by the first quarter of next year, Nigerians will begin to see some work begin, at least in the initial construction development phase of the plan.

You may also like:  Shareholders okay GTBank’s final dividend of N2.45 per share

Regardless, he said government’s aspiration to cut down on importation of refined petroleum products was still on course, even where the refineries rehabilitation plan did not fall through.

He said the Dangote refinery project was still moving ahead full steam towards its scheduled delivery date in 2020.

Besides, the minister said three of the modular refineries government was putting in place are currently moving on stream, nearing the end and almost ready to deliver refined products into the local fuel market.

Recently, the Group Managing Director of the , said Kellog Brown and Root was asked to work with the Nigerian Engineering and Technical Company (NETCO)to conduct a detailed scoping of the refineries in Port Harcourt and Warri to determine what needed to be done in each.

On completion of the technical assessment of the refineries and costing, he said the NNPC later approached the original designers and builders of the refineries to supervise the construction work.

He said JGC Corporation of Japan and Saipem, were invited for the Port Harcourt Refinery, while Tecnimont and Snamprogetti were invited for Warri Refinery.

You may also like:  OPEC sees fresh challenges in 2019 as Qatar exits group after 57 years

In addition, he said Chiyoda Corporation was also approached, as well as Saipem, who handled the construction of the Kaduna Refinery.

According to Mr Baru, the NNPC Board met with the contractors in London to sort out their anxieties about funding and debt service process.

He said the delay in the commencement of the construction work on the refineries was because the NNPC was yet to agree on these issues.

“Once these issues are resolved, the relevant agreements with the financiers will be signed, to allow funding for the original refinery builders to come in and rehabilitate or refurbish the refineries, to guarantee us 90 per cent fuel production capacity,” Mr Baru said.

Share this
Ads Blocker Detected!

We show Ads on to help fund its maintenance. Ad revenue is only Our Source Of Income. If you like our News Website  please support our efforts by allowing ads on our site.

Thank You!