The planned rapid repair of Kaduna Refining & Petrochemical Company (KRPC) Ltd by the state oil company is expected to restore it to a minimum of 60 percent of its nominal capacity by the fourth quarter of 2024.

According to Nigerian National Petroleum Company (NNPC) Ltd, the project will be in three work packages as a maintenance services contract from Daewoo E&C Nigeria Limited with an estimated maximum cost of $740.7 million for a duration of 21 months.

Adeyemi Adetunji, Executive Vice President Downstream of NNPCL, said at the contract signing ceremony that the quick fix strategy ensures the quickest route to re-transmit Warri Refining & Petrochemicals Company Limited (WRPC) and KRPC to production in the country of refined petroleum products.

He said: “Restoring WRPC and KRPC back to operation will ensure energy security for the country and reduce reliance on imported petroleum products in view of the near-total reliance on imported petroleum product supplies and the impact that is having the ongoing Russian-Ukrainian war. on world supply.

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“In addition, this will generate income, reduce the demand for FOREX, supply raw materials to industries, create employment for Nigerians and ensure technology transfer, among other benefits.”

Adetunji said the NNPC is using a combination of internally generated revenue and third-party financing to carry out the refinery repairs.

He said that after the rehabilitation of the three refineries (Kaduna, Warri and Port-Harcourt), world renowned operations and maintenance contractors would be contracted to operate the refinery in a safe, reliable, sustainable and profitable manner.

“Meanwhile, PHRC’s rehabilitation has made considerable progress. The old refinery is currently at 64 percent completion with the plant expected to be back online in the second quarter of 2023, while the entire PHRC rehabilitation project is now at approximately 59 percent.

“On the other hand, the WRPC Quick-fix project has achieved 28 percent completion and is expected to go live again by the end of this year,” he said.

Furthermore, Adetunji said that NNPC Limited’s board and management are fully committed to providing all necessary support to ensure that the refineries are repaired and back up and running on cost and schedule.