Nigerian National Petroleum Corporation (NNPC) and an Italian engineering company, Tecnimont SpA, have signed the engineering procurement and construction (EPC) contract for the rehabilitation of the Port Harcourt refinery in Rivers State, Southern Nigeria.
Recall that the Federal Executive Council (FEC) had in March approved the sum of $1.5 billion for the rehabilitation of the refinery.
Managing Director of the Port Harcourt refinery company (PHRC), Ahmed Dikko and the Vice President of Tecnimont SpA, Sub-Saharan Africa, Davide Pellizola signed the contract on Tuesday.
The contract is expected to run in three phases of 18 months, 24 months and 44 months respectively. The project funding has three components from NNPC internally generated revenue (IGR), Afreximbank and budgetary provisions, according to Timipre Sylva, the Minister of State for Petroleum.
“The Ministry of Petroleum Resources presented a memo on the rehabilitation of Port Harcourt refinery for the sum of 1.5 billion, and that memo was $1.5 billion and it was approved by council today,” the Minister had said.
“So we are happy to announce that the rehabilitation of productivity refinery will commence in three phases. The first phase is to be completed in 18 months, which will take the refinery to a production of 90 percent of its nameplate capacity.
“The second phase is to be completed in 24 months and all the final stage will be completed in 44 months and consultations are approved.”