Nigeria is gearing up for a new oil refinery venture, with a primary focus on reviving a deteriorated refinery. This endeavor follows closely on the heels of Africa’s wealthiest individual, Dangote, unveiling his own oil refinery.
Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has affirmed that the ongoing revival of the Kaduna Refinery and Petrochemicals Company (KRPC), situated in Nigeria’s northern region, is on track to be completed, with operations set to commence in the fourth quarter of 2024.
This was disclosed by Lokpobiri during an inspection trip of the Kaduna Refinery and Petrochemicals on Saturday, according to a news release from the Nigerian National Petroleum Company (NNPC) Limited. Lokpobiri was evaluating the status of work on the current quick-fix project at the Kaduna Refinery.
Given the “significant level of progress” he saw during the excursion, Lokpobiri expressed confidence that the refinery will be restored by the end of 2024.
The Minister promised the Federal Government’s assistance in guaranteeing the project’s prompt completion and said that he would keep holding important parties responsible for the nation’s refineries’ repair.
He noted that the refinery must be restarted immediately in order to support both the country’s economic growth and energy security, both of which are prerequisites for sustained development.
During the event, Mele Kyari, the Group Chief Executive Officer (CEO) of NNPC Ltd., informed the Minister that the refinery’s fuel plant will be delivered by the end of 2024.
According to the Nigerian business news publication, Nairametrics, “The NNPC had in February signed a $741 million maintenance service contract with a South Korean engineering firm, Daewoo Engineering and Construction Company Limited, for a quick fix repair of Kaduna Refinery and Petroleum Company (KRPC).”
The publication also noted that “in October 2022, the state-owned oil company and Daewoo signed a Memorandum of Understanding (MOU) to rehabilitate the 110 barrels per day Kaduna Refinery. Daewoo Group is also involved in ongoing rehabilitation works at the Warri refinery, which is expected to start working by 2023.”
The Federal Executive Council (FEC) had granted approval in August 2021 for the refurbishment of the Warri and Kaduna refineries, with a total budget of $1.4 billion.
Having a combined daily capacity of 210,000 barrels, the NNPC had already contracted Italy’s Maire Tecnimont SpA to undertake the restoration of two refineries in the Port Harcourt oil hub. The primary funding for this project came from a $1 billion loan provided by the African Export-Import Bank (Afeximbank).
