Rehabilitation of Nigeria’s ailing refineries to gulp $550m
The state-run Nigerian National Petroleum Corporation (NNPC) says it has engaged the services of in-house engineers to rehabilitate Nigerian ailing refineries at a cost of $550m. The refineries are the Port Harcourt Refining Company, Kaduna Refining and Petrochemical Company Limited and the Warri Refining and Petrochemical Company Limited
The Group Executive Director, Refining and Petrochemicals of the NNPC, Mr. Ian Udoh, said that the corporation had to use indigenous engineers because it could not pay the bills of foreigners that were nominated by the original builders of the refineries.
Nigeria’s National Mirror newspaper report on Thursday said that Udoh, who spoke on the sidelines of a briefing organised by the corporation to refute claims that it was indicted by the forensic audit report of the PricewaterhouseCoopers (PwC), noted that the original builders of the refineries would have come up to $1.6bn for the rehabilitation of the plants.
“But we couldn’t afford that because we are not going to get any funding from the government for that.
“We examined the work scope and picked up the essential things that we must do to get these refineries to operate optimally at around 90 percent of capacity.
“That was done and we did the pricing template, not the international rates. We used the local rates. And everything for the three refineries combined came to around $550m, which is significant, maybe up to 70 percent reduction.
“Even the $550m is quite much. So we amortized it over 18 months so that we will be able to swallow it in bits more easy. The 18 months started since last October and this means that early next year the refineries should be in shape,” he said.
The Group Executive Director, Refining and Petrochemicals of the NNPC, Mr. Ian Udoh, said that the corporation had to use indigenous engineers because it could not pay the bills of foreigners that were nominated by the original builders of the refineries.
Nigeria’s National Mirror newspaper report on Thursday said that Udoh, who spoke on the sidelines of a briefing organised by the corporation to refute claims that it was indicted by the forensic audit report of the PricewaterhouseCoopers (PwC), noted that the original builders of the refineries would have come up to $1.6bn for the rehabilitation of the plants.
“But we couldn’t afford that because we are not going to get any funding from the government for that.
“We examined the work scope and picked up the essential things that we must do to get these refineries to operate optimally at around 90 percent of capacity.
“That was done and we did the pricing template, not the international rates. We used the local rates. And everything for the three refineries combined came to around $550m, which is significant, maybe up to 70 percent reduction.
“Even the $550m is quite much. So we amortized it over 18 months so that we will be able to swallow it in bits more easy. The 18 months started since last October and this means that early next year the refineries should be in shape,” he said.
No comments:
Post a Comment