The Federal Executive Council (FEC) has approved the award of contracts for the rehabilitation of Warri and Kaduna refineries to Messrs Saipem SPA and Saipem Contracting Limited at the combined sum of $1.484 billion.
The Minister of State, Petroleum Resources, Timipre Sylva, disclosed this Wednesday, while briefing State House reporters on the outcome of the federal cabinet meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
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According to him, Warri refinery rehabilitation got $897,678,800, while Kaduna Refinery would cost $586,902,256.
Sylva said the completion of the rehabilitation of Warri and Kaduna refineries would 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 added.
The minister, while reacting to a question that sought to get update about Port Harcourt Refinery, said: “Work has already commenced in Port Harcourt refinery. Already, the first 15% of the contract sum has been paid to the contractor and the contract 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.”
FEC had in March approved $1.5 billion for the rehabilitation of the largest refining company in the country, Port Harcourt Refinery, to an Italian company, Tecnimont spa, with three funding components from Nigerian National Petroleum Corporation (NNPC) Internally Generated Revenue (IGR), budgetary allocations provisions and Afreximbank.
Sylva also disclosed that FEC approved the acquisition of 20% minority stakes by the NNPC in Dangote Petroleum and Petrochemical Refinery in the sum of $2.76 billion.