The Nigerian National Petroleum Corporation (NNPC) has signed an Engineering, Procurement & Construction (EPC) contract with Tecnimont SpA.
The deal is for the rehabilitation of Port Harcourt Refining Company (PHRC).
NATIONAL ECONOMY had reported that the Federal Executive Council (FEC) recently approved the sum of $1.5 billion for the project.
This move was vilified by many political observers including a former Vice President of Nigeria, Atiku Abubakar who said the company should be sold off.
Mele Kyari, the Group Managing Director of NNPC, speaking during the Engineering, Procurement and Construction (EPC) contract signing ceremony on Tuesday, April 6, said: “Mr President promised Nigerians he will fix the refineries.
“We are happy to deliver on this Presidential mandate. We’ll continue this process to also deliver on both Warri and Kaduna Refineries.”
Ahmed Dikko, managing director of Port Harcourt refinery company (PHRC), signed for the refinery, while Davide Pellizola, signed for the Tecnimont SpA, contractor for the project.
In a press statement afterward, Pierroberto Folgiero, Maire Tecnimont Group Chief Executive Officer described Nigeria as excellent downstream prospects with the necessary demographics to unlock greater added value from the transformation of natural resources promising the project will be delivered in phases from 24 and 32 months and the final stage will be completed in 44 months from the award date.
He said, “With this great result we confirm the soundness of our business strategy on geography diversification, as one of its key elements is to grow and assist our clients in their revamping initiatives, leveraging on our technological know-how to ensure more efficient and environmentally better performing processes and products. It represents a testament of our technological DNA, as we are strongly increasing our focus on initiatives for the modernization of the refining sector, such as these strategic rehabilitation works,” he said.
“Moreover, we enhance our footprint in Nigeria and in Sub-Saharan Africa, a market with excellent downstream prospects given its demographics and the necessity to unlock greater added value from the transformation of natural resources.”
Recall in March, the Minister of State for Petroleum, Timipre Sylva, said the funding will be from many components including the NNPC, Internally Generated Revenue (IGR), budgetary provisions, and Afreximbank.