Lagos — The NNPC has signed a maintenance Service contract for a quick-fix repair of the Kaduna Refining and Petrochemical company Limited (KRPC).
This marks a milestone in the history of the KRPC considering that the last Turn Around Maintenance, (TAM) on the refinery occurred about 15 years ago,”
The project was framed after extensive engagement with Daewoo on the Quick-Fix strategy to repair and re-stream KRPC and operate it on a sustainable basis at a minimum capacity utilization of 60%.
The project would be executed in three work packages as a Maintenance Services contract by Daewoo E&C Nigeria Ltd., at an estimated maximum cost ceiling of US$740,669,600.00 with a duration of 21 months.
The Quick-Fix strategy guarantees the fastest route to restoring Warri refinery Petrochemical Company (WRPC) and Kaduna Refining and Petrochemical Company (KRPC) for in-country production of refined petroleum products.
Restoring WRPC and KRPC back to operation will guarantee energy security for the country, reduce dependence on imported petroleum products in view of the near total dependence on supply of imported petroleum products and the impact the ongoing Russia-Ukraine war is having on global supply.
It will also generate revenue, reduce demand for FOREX, supply raw materials to industries, create employment for Nigerians and ensure technology transfer amongst other benefits.
The proposed quick-fix initiative on KRPC is expected to restore it to a minimum of sixty percent of its nameplate capacity by the 4th Quater of 2024.
NNPC Limited is using a combination of internally generated revenue and third party financing to execute the repairs of the refinery.
Post rehabilitation of the three refineries, globally reputable operations and maintenance (O&M) contractors shall be engaged to run the refinery safely, reliably, Sustainably and profitably.
All Staffs involved in this project are implored to show total commitment in ensuring that this project is successfully executed as over 200 million Nigerians are looking up to NNPC limited to deliver on this mandate.
The board and management of NNPC Limited are fully committed to providing all the required support to ensure that the refineries are repaired and back in operation on cost and schedule.
Meanwhile, the rehabilitation of PHRC has progressed considerably. The old refinery in currently at 64% completion and the plant is expected back in operation in the 2nd Quarter of 2023, while the entire PHRC Rehabilitation project currently stands at about 59%.
On the other Hand, WRPC Quick-fix project has achieved 28% completion and is expected to be restreamed by the end of this year.
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