The state-run Nigerian National Petroleum Corporation (NNPC) has signed the $1.5 billion Port Harcourt Refinery rehabilitation contract with Italian firm, Tecnimont SPA in spite of objections by many Nigerian industry players.
Many Nigerian oil industry experts believe that the money should have been invested in building a new refinery as the refinery had in the past gulped millions of dollars in turnaround maintenance that did not yield any meaningful results
The two parties said at the signing ceremony on Tuesday in Abuja that the signing of the agreement signaled the commencement of the project.
Speaking at the virtual contract signing event, the Group Managing Director of the NNPC, Mallam Mele Kyari, said that the agreement was basically between Port Harcourt Refinery Company (PHRC) and Tecnimont SPA.
He explained that the contract was for the provision of engineering, procurement, construction, installation and commissioning services for the refinery rehabilitation project.
Local media reports on Wednesday said that the Managing Director of the PHRC, Mr. Ahmed Dikko, signed for the refinery, while a representative of Tecnimont SpA, Davide Pellizola, signed for the Italian engineering firm.
According to the reports, the first phase of the rehabilitation in is expected to be completed in 18 months and the refinery is expected to operate at 90 percent of its capacity, while the second phase is to be completed in 24 months and all the final stage will be completed in 44 months.
GIK/APA