From Uche Usim, Abuja

A major step towards achieving local refining of crude oil was taken on Thursday, as the Nigerian National Petroleum Company Limited (NNPCL) signed an an agreement Daewoo Engineering Company to repair and re-stream the Kaduna Petrochemical and Petrochemical Company Ltd (KPRC) that has laid prostrate for years.

The cost of the project, according to NNPCL, is N340.78 billion ($740.6 million) with a duration of 21 months.

By the deal, Daewoo, a South Korean company is expected to repair and re-stream KRPC and operate it on a sustainable basis at a minimum capacity utilization of 60%.

Speaking at the signing ceremony, Baek Jeong-wan, the Chief Executive Officer of the Daewoo assured of the company’s total commitment to ensure the project is delivered on schedule.

In his remarks, the Group Chief Executive Officer of NNPCL, Mele Kyari, said Nigeria was aggressively working towards energy sufficiency, adding that the only way it could be achieved was to ensure local refining which is why the Company conceived the idea of the project

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The Executive Vice-president Upstream at the NNPCL Adeyemi Adetunji said “The project shall be executed in three work packages as a Maintenance Services contract by Daewoo E&C as the

Quick-Fix strategy guarantees the fastest route to restreaming WRPC and KRPC for in-country production of refined petroleum products.

“Restoring Warri and Kaduna refinery back to operation will guarantee energy security for the country, reduce dependence on imported petroleum products in view of near total dependence on supply of imported petroleum products and the impact the ongoing Russia-Ukraine war is having on global supply.

Also, this will generate revenue, reduce demand for FOREX, supply raw materials to industries, create employment for Nigerians and ensure technology transfer, amongst other benefits,” he said

He added that the proposed quick-fix initiative on KRPC is expected to restore it to a minimum of 60% of its nameplate capacity by Q4 2024.