General news

NNPC, Maire Tecnimont SpA sign contract for rehabilitation of Port Harcourt Refinery



By Edith Ike-Eboh

The Nigerian National Petroleum Corporation (NNPC) has signed a contract with Maire Tecnimont SPA, an Italian company, for the rehabilitation of the Port Harcourt refining company (PHRC).

NNPC Group Managing Director Malam Mele Kyari, upon signing the contract in Abuja, said on Tuesday that the contractor had been selected with a high level of transparency.

Maire Tecnimont SpA is an Italian group comprising 50 companies in the engineering, technology and energy sectors.

It works in the engineering of oil and gas installations, chemicals and petrochemicals, green chemistry and technologies serving the energy transition.

“My colleagues and I are very proud of what is happening today, a tendering process that has cumulated in this event today, the signing of a contract for the rehabilitation of the refinery of Port Harcourt.

“It’s a monumental story for us,” he said.

He said the company is aware of the public doubts about the cost of the refinery rehabilitation, but noted that the NNPC will maintain a high level of transparency in the process of carrying out the works.

He said the government had admitted that it had made a lot of mistakes with refinery Turnaround Maintenance (TAM) over the years.

He explained that NNPC selected the contractor through a transparent Engineering, Procurement and Construction (EPC) process and also on the recommendation of the original refinery builders.

“We decided to collect our parts and go through the EPC contract process. It is probably the most transparent CPE that anyone can put on the table.

“It’s because we’ve even involved those who shouldn’t be in the process for the sake of transparency.

“Right now, we are happy to do this, happy that the President can keep his promises to Nigerians,” he said.

Commenting on the cost, Kyari said the $ 1.5 billion previously reported in the media was the actual cost of the job, including value added tax (VAT).

“For the avoidance of doubt, the figure you see in the media included VAT, we disclosed how much it will cost in the rehabilitation of the refinery.

“The real cost excluding VAT is $ 1.299 billion with a provisional sum of $ 162 billion.

“That’s the value of the contract. What you see in the media is about $ 1.5 billion because we’re a very compliant company, we’ve included everything people need to know. We are also proud of it, ” he said.

The GMD further noted that the rehabilitation would involve the replacement, modernization and change of obsolete parts of the refinery.

He said the books of the NNPC would be open to any public audit during and after completion of the work.

He also indicated that the award of contracts for the rehabilitation of the Kaduna and Warri refineries would take place by the end of June, with the selection process underway.

He congratulated all stakeholders for their support and assured that the project would be delivered at the agreed cost and on time.

He instructed the contractor to be aware that the project was a national project and should turn over to the government anyone who perpetuates a fraudulent act.

In his remarks, the Director General of the PHRC, Ahmed Dikko, commended the NNPC for its efforts to secure the signing of the contract.

He said the development was a dream come true and the result of the conscious efforts and dedication of the federal government and the NNPC.

He said that the scope of the activity of the selected contractor was the engineering, procurement, construction and installation of the refinery rehabilitation works.

“The fixed price for this contract is $ 1,397 billion, including VAT. The approved provision amount is $ 162,239 million.

“The method of payment for the contract will be via an escrow account which will be established within the next two months maximum.

“The start-up period for this program is today after signing,” he said.

He added that the maximum project completion time would be 44 months, but the first phase would end within 24 months while phase 2 would be 32 months and the last phase would be 44 months.

In response, Maire Tecnimont SpA chief executive Davide Pelizzola said the contract would deepen relations between the company and Nigeria.

He assured that he would commit to ensuring that the rehabilitation project is completed on time. (NOPE)


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