The Nigerian National Petroleum Corporation (NNPC) has signed a contract with Maire Tecnimont SPA, an Italian Company; for the rehabilitation of the Port Harcourt Refinery Company (PHRC).
The Group Managing Director, NNPC, Malam Mele Kyari, at the signing of the Contract in Abuja, on Tuesday, April 6, said the contractor was selected with a high level of transparency.
Maire Tecnimont S.p.A. is an Italian group comprising 50 companies in the engineering, technology, and energy sectors.
It deals in plant engineering in oil and gas, chemicals and petrochemicals, green chemistry, and technology supporting the energy transition.
“My colleagues and I are very proud of what is happening today; a tender process which cumulated in this event of today, the signing of contract for the rehabilitation of Port Harcourt Refinery.
“This is a monumental history for us,” he said.
He said the corporation was aware of misgiving in the public on the cost of rehabilitation of the refinery; but noted that the NNPC would maintain a high level of transparency in the process of carrying out the work.
He said the government had admitted the fact it made a lot of mistakes with the Turnaround Maintenance (TAM) of the refineries over the years.
He explained that NNPC selected the contractor through the transparent Engineering, Procurement and Construction (EPC) process and also by the recommendation of the original builders of the refinery.
“We have decided to pick up our pieces and follow the EPC contract process. This is probably the most transparent EPC that anyone can put on the table.
“This is because we even involved those that ought not to be in the process for transparency’s sake.
“This moment, we are happy to deliver on this, happy that Mr President will be able to meet his promises to Nigerians,” he said.
Commenting on the cost, Kyari said the 1.5 billion dollars earlier reported in the media was the actual cost of the work inclusive of Value Added Tax (VAT).
“For the avoidance of doubts, the figure you see in the media included VAT; we have disclosed everything that it will cost in the rehabilitation of the refinery.
“Actual cost exclusive of VAT is 1.299 billion dollars with a provisional sum of 162 billion dollars.
“That is the value of the contract. What you see in the Media is around 1.5 billion dollars because we are a very compliant company; we included everything that is needed that people should know. We are also proud of this,’’ he said.
The GMD further noted that the rehabilitation would involve replacement, upgrade and change of obsolete parts of the refinery.