HomeNewsRehabilitation of the 110,000 barrel per day (bpd) Kaduna Refinery in Nigeria 

Rehabilitation of the 110,000 barrel per day (bpd) Kaduna Refinery in Nigeria 

A US$ 741M quick-fix repair contract has been awarded for the rehabilitation of the 110,000 barrel per day (bpd) Kaduna Refinery in Nigeria. The contract was awarded by the Nigerian National Petroleum Corporation (NNPC) to the Korean construction company Daewoo Engineering & Construction.

Overall, Daewoo will be responsible for restoring production at the facility to 60% of its total capacity. This project will be carried out in three work packages at an estimated maximum cost ceiling with a duration of 21 months.

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The US$ 741M contract comes following a memorandum of understanding signed between NNPC and Daewoo in October 2022. In addition, it falls under a US$ 1.4bn package approved by the Nigerian Federal Council in August 2021. The package covers the rehabilitation of both Kaduna and Warri Refineries.

Reported earlier

Nov 2022

Deal signed for the resumption of Kaduna refinery rehabilitation project in Nigeria

NNPC Ltd has initialed a memorandum of understanding with the Korean company Daewoo, in order to restart the Kaduna refinery. The deal concluded on the sidelines of the 1st world summit on biotechnology which took place on October 25 and 26 in Seoul, South Korea.

The facility can handle 110,000 barrels of oil per day. But like the other four refineries in Nigeria, it was shut down because of high maintenance expenses.

The Nigerian government has launched a comprehensive program to encourage the domestic production of petroleum products, which includes the operationalization of the Kaduna refinery. Thus, efforts are being made to restart the Port-Harcourt and Warri refineries in the country’s south.

The project’s ultimate goal is to cut back on gasoline imports and the money the State commits to subsidize them. This might help to reduce the nation’s ongoing energy difficulties.

The rehabilitation of the Kaduna refinery is to be complete by the first quarter of 2023

According to the two parties, the deal should be completed by the first quarter of 2023. Furthermore, President Muhammadu Buhari expressed his joy at witnessing the signing of the Memorandum of Understanding. Buhari was in South Korea with the Minister of State for Petroleum Resources, Chief Timipre Sylva. As well as the Group Chief Executive Officer of NNPC, Mallam Mele Kyari.

According to Buhari, “The Daewoo Group has made significant investments in the automobile, maritime, and other sectors of our economy. And I am also aware that Daewoo is now working on building seagoing LPG tankers for NNPC and her partners. As well as completing the NLNG Train Seven project.”

He stated that this no doubt will create more windows of potential for Daewoo and other Korean industries in Nigeria. Particularly at the Warri and Kaduna refineries and the NLNG Train Seven.

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