The sum of $1.48 billion has been approved by the federal executive council (FEC) for the rehabilitation of both Warri and Kaduna refineries.
This was announced on Wednesday by the minister of state for petroleum resources, Timipre Sylva at the end of the weekly FEC meeting in Abuja.
According to Sylva, the rehabilitation of Warri and Kaduna refineries will be awarded to Messers Saipem SPA and Saipem Contracting Limited at the combined total sum of $1.484 billion and will be rehabilitated in three phases of 21, 23 and 33 months.
The FEC in March 2021 approved the sum of $1.5 billion for the rehabilitation of Port Harcourt refinery in Rivers state.
Sylva said $897,678,800 will be spent to repair Warri refinery while Kaduna refinery will gulp $586,902,256, noting that the completion of the rehabilitation exercise will be in three phases spread over 77 months period.
“The completion of the rehabilitation of Warri and Kaduna refineries is going to be in three phases. 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,” he said.
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 Port Harcourt refinery, and you will all be with us on that visit.”
In June, Mele Kyari, group managing director of the Nigerian National Petroleum Corporation, had said the rehabilitation of the refineries, in conjunction with private efforts such as the Dangote Refinery, will transform Nigeria into a “hub of petroleum products and supply”.