FG okay $1.48 billion for rehabilitation of Kaduna, Warri refineries
The Federal Executive Council (FEC) has approved $1.4 billion for the $1.48 billion renovations of the Warri and Kaduna refineries.
The decision was made at the council’s weekly meeting, with $897 million set aside for the Warri refinery and $586 million set out for the Kaduna refinery.
According to NAN, the Minister of State for Petroleum, Timipre Sylva, said this while speaking to State House media after the FEC meeting on Wednesday at the Presidential Villa in Abuja, which was chaired by Vice President Yemi Osinbajo.
Sylva said that the rehabilitation contract which was awarded to Messers Saipem SPA and Saipem Contracting Limited at a total of $1.48 billion, will be carried out in 3 phases.
The Minister pointed out that the rehabilitation exercise for the 2 refineries will run in 3 phases over a period of 77 months.
Sylva said, ‘’The FEC, today, approved the award of contract for the rehabilitation of Warri and Kaduna Refineries at the combined total sum of 1.5 billion dollars– 897. 67 million dollars for Warri Refinery and 586. 9 million dollars for Kaduna Refinery.
“The Executive Council also approved the acquisition of 20 per cent minority stakes by the NNPC in the Dangote Petroleum and Petro-Chemical Refineries in the sum of 2.76 billion dollars.
“The completion of the rehabilitation of the Warri and Kaduna Refineries is going to be in three phases. First phase is within 21 months; in 23 months, phase 2 will be completed and in 33 months, the full rehabilitation will be completed.
“Work has already commenced in Port Harcourt; already the first 15 per cent of the contract sum has been paid to the contractor and contractor has fully mobilized to site.”
He said that the council also discussed the need to give periodic updates on the projects adding that there will soon be an inspection of work in the Port Harcourt Refinery.
