Financial Energy Review
The Federal Executive Council presided over by Vice President, Yemi Osinbajo, has approved the sum of $1.484 billion for the rehabilitation of both Warri and Kaduna refineries.
The rehabilitation of Warri and Kaduna refineries awarded to Messers Saipem SPA and Saipem Contracting Limited at the combined total sum of $1.484 billion, will be rehabilitated in three phases of 21, 23 and 33 months.
Minister of State for Petroleum Resources, Timipre Sylva, announced at the end over six hours meeting, which started with a minute silence in honour of the former Minister of Agriculture, Dr Malami Buwai, who served during the regime of the former Head of State, General Sani Abacha from 1994 – 1996.
Sylva, also said 15 per cent of the total sum for the rehabilitation of the two refineries in Port Harcourt which was awarded earlier this year had been paid to the construction firm currently working at the site.
According to him, $897,678,800 will be spent to repair the Warri refinery while the Kaduna refinery will gulp $586,902,256.
He stressed that the completion of the rehabilitation exercise will be in three phases spread over 77-month period.
Sylva said: ‘The completion of the rehabilitation of Warri and Kaduna refineries is going to be in three phases. The first phase will be completed within 21 months, in 23 months phase two will be completed and in 33 months, the full rehabilitation will be completed.’
On Port Harcourt refinery, Sylva noted that the repair work had commenced adding that already the first 15% of the contract sum has been paid to the contractor and the contractor was fully mobilised to site.
“We also discussed in council the need for us to give periodic updates. Soon, we’ll be going to inspect the work in the Port Harcourt refinery, and you will all be with us on that visit.’
He also announced that the Council approved the acquisition of 20% minority stakes by the NNPC in Dangote Petroleum and petrochemical refinery in the sum of $2.76 billion.
