NNPCL Inks $741m Oil Deal to Refurbish Kaduna Refinery

The Nigerian National Petroleum Company (NNPC) Limited has signed a $741 million maintenance service contract with a South Korean engineering company, Daewoo Engineering and Construction Company Limited (KRPC). This was disclosed by a statement issued by the NNPC. 

NNPC in the statement revealed that the deal was targeted at repairing the Kaduna Refinery and Petroleum Company quickly. It also asserted that the agreements were concluded at the NNPC Towers in Abuja yesterday.

Conditions of the $741 Oil Deal 

The NNPC hinted that the Korean company, Daewoo must facilitate the increment of production at the inoperative 110,000 barrels per day facility to at least 60% of its capacity by the end of 2024. It also noted that “it will finance Daewoo’s “quick-fix” turnaround work at the Kaduna plant through a mix of its own revenue and third-party financing.”  

The $741 Oil Deal, according to NNPC comes as part of “efforts to reduce Nigeria’s near total reliance on imported fuel” which according to them has been “a long source of embarrassment for the government of Africa’s largest crude producer.”

NNPC speaks on other investments

It revealed that it acquired a 20 per cent stake in a vast 650,000 barrel-a-day complex being built by Africa’s richest person, Aliko Dangote. NNPC added that it is also funding Italy’s Maire Tecnimont SpA to rehabilitate two state-owned refineries in Port Harcourt. The two state-owned refineries have a combined capacity of 210,000 barrels a day. It further noted that the rehabilitation is being funded with a $1 billion loan from the Cairo-headquartered African Export–Import Bank.

Speaking on the operations of both refineries, NNPCL disclosed that it will hire reputable contractors from outside the country to run them, once they resume production.

Recall that the Nigerian government had earlier announced plans to remove fuel subsidies in June 2023.

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