The Federal Executive Council (FEC) on Wednesday approved the sum of $1.48 billion for the rehabilitation of Warri and Kaduna refineries.
Minister of state for petroleum resources, Timipre Sylva, who disclosed this at the end of the FEC meeting in Abuja, said contract for the rehabilitation of the refineries had been awarded to Messrs Saipem SPA and Saipem Contracting Limited at the combined total cost of $1.484 billion.
The refineries, according to him, will be rehabilitated in three phases of 21, 23 and 33 months.
Sylva said $897,678,800 will be spent on Warri refinery while Kaduna refinery will take $586,902,256, noting that the completion of the rehabilitation exercise will be in three phases spread over 77 months period.
“The completion of the rehabilitation of Warri and Kaduna refineries is going to be in three phases. First phase will be completed within 21 months, in 23 months phase two will be completed and in 33 months, the full rehabilitation will be completed,” he said.
On Port Harcourt refinery, Sylva noted that the repair work had commenced adding that already the first 15% of the contract sum has been paid to the contractor and the contractor was fully mobilised to site.
“We also discussed in council the need for us to give periodic updates. Soon, we’ll be going to inspect the work in Port Harcourt refinery, and you will all be with us on that visit.”
It would be recalled that in March 2021, FEC awarded a $1.5 billion contract for the rehabilitation of Port Harcourt refinery in Rivers State.
In June, Mele Kyari, group managing director of Nigerian National Petroleum Corporation (NNPC), had said the rehabilitation of the refineries, in conjunction with private efforts such as the Dangote Refinery, will transform Nigeria into a “hub of petroleum products and supply”.
