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NNPC, Italian firm sign $1.5bn Port Harcourt refinery rehabilitation contract

Barely three weeks after the Federal Government (FG) approved $1.5 billion contract for the rehabilitation of the Port Harcourt Refinery (PHRC), the management of the Nigerian National Petroleum Corporation (NNPC) on Tuesday signed the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract with Milan, Italy based company, Tecnimont SpA for the rehabilitation of the 210,000 barrels per day capacity the refinery.

The rehabilitation project which has a completion timeline of  between 18 and 44 months under a three-phase arrangement was awarded to Milan based Tecnimont SpA at a lump sum contract price of US$1.5 billion, inclusive of VAT and other statutory payments.

Speaking at the contract signing ceremony, Group Managing Director of the NNPC, Mele Kyari, described the PHRC rehabilitation project as a dream comes true, noting that the project was in line with President Muhammadu Buhari’s promise to the Nigerian people to make the refineries work.

Mallam Kyari reiterated that in arriving at the choice of Tecnimont SpA, the corporation had embarked on a transparent tender process which can withstand any forensic audit, noting that NNPC was ready and open to answer any question pertaining to the project.

He assured that the same transparent process has also been put in place for the rehabilitation of the Warri and Kaduna Refineries whose EPCIC contracts would be awarded in June 2021.

The GMD explained that the rehabilitation exercise was very different from a routine Turn-Around Maintenance as it would entail a total retrofitting of the plant with major part and equipment replaced with new ones.

Providing further insight into the project, Managing Director of Port Harcourt Refining Company Limited, Ahmed Dikko, said the Phases 1 and 2 of the project would get the refinery ready to receive hydrocarbon, while Phase 3 will focus on the start-up the refinery for operation, stressing that the entire work shall be delivered in 44 months from today.

Also speaking at the ceremony, Tecnimont SpA Vice President, Sub-Saharan Africa Region, Davide Pelizzola, said his company was ready to work assiduously with the NNPC to comply with the terms and obligations of the contract.

The signing ceremony was witnessed by the Nigeria Extractive Industries Transparency Initiative (NEITI), Infrastructure Concession Regulatory Commission (ICRC), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers NUPENG amongst others.



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