The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has provided an optimistic update on the ongoing rehabilitation of the Kaduna Refinery and Petrochemicals Company (KRPC). He announced that the refinery is on track to commence operations in the fourth quarter of 2024.
This announcement was made during an inspection tour of the Kaduna Refinery & Petrochemicals, where Lokpobiri assessed the progress of the ongoing quick-fix project of the refinery. The Minister expressed confidence in the project’s progress and its potential to be restreamed by the end of 2024.
Key Accountability in the Rehabilitation Process
Heineken Lokpobiri emphasized his commitment to holding key players involved in the rehabilitation of the nation’s refineries accountable. He pledged the Federal Government’s support to ensure the timely completion of the project. Lokpobiri stressed the urgency of restoring the refinery’s operations to benefit the nation’s economic prosperity and energy security, contributing to sustainable development.
NNPC Group CEO’s Reassurance
During the same event, Mele Kyari, the Group Chief Executive Officer (CEO) of NNPC Ltd., reassured the Minister that the fuel plant at the refinery would be operational by the end of 2024. Kyari confirmed that all necessary measures are being taken to bring the refinery back into operation. He stated that the contractor had already mobilized to the site, and the required equipment for the quick-fix activities was in place.
Kyari added, “We are very confident that we will get the appropriate financing to get to the end of it, and ultimately, we will start to deliver value to Nigerians again. We plan the quick fix for 60,000 barrels per day so that we can start making money from this plant and we can continue the other part of the refinery to bring it up to its full-fledged capacity. This will also tally with the completion of the Build, Operate, and Transfer (BOT) on the pipeline so as to have a reliable pipeline delivery infrastructure.”
Prominent Figures Present
The inspection tour was preceded by the 14th Refineries Rehabilitation Steering Committee Meeting. It was attended by Adedapo Segun, NNPC Limited’s Executive Vice President, Downstream; Oritsemeyiwa Eyesan, Executive Vice President, Upstream; Managing Directors of the three refineries; and several other members of the Committee.
Background
In February, the NNPC signed a $741 million maintenance service contract with the South Korean engineering firm Daewoo Engineering and Construction Company Limited for a quick-fix repair of Kaduna Refinery and Petroleum Company (KRPC). The contract was part of the ongoing rehabilitation efforts.
It’s worth noting that Daewoo Group is also involved in ongoing rehabilitation works at the Warri refinery, which is expected to become operational by 2023.
The Federal Executive Council (FEC) approved $1.4 billion for the rehabilitation of the Warri and Kaduna refineries in August 2021. Additionally, the NNPC had previously contracted Italy’s Maire Tecnimont SpA to rehabilitate two of its refineries in Port Harcourt, primarily funded through a $1 billion loan from the African Export–Import Bank (Afreximbank).
These developments are crucial steps in reviving Nigeria’s domestic refining capacity, which is essential for the country’s energy security and economic growth. The rehabilitation of refineries is a critical aspect of ensuring a steady supply of petroleum products and reducing the nation’s dependence on imports.
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