Concerns as FG Approves Rehabilitation of P’Harcourt Refinery with $1.5 billion
The federal government decision to rehabilitate the Port Harcourt refinery with the sum of $1.5bn has raised concerns on the viability or economic sense of the exercise.
Experts who spoke to SHIPPING DAY on the latest movement said government could have decided for a brand new refinery than the rehabilitation of the old ones with a lot of technical issues involved.
A petroleum engineer who pleaded anonymity said it was better to go for a brand new refinery than to embark on rehabilitating the old ones, explaining that technology is changing by the day in which case it could be more expensive to run the old refineries than new ones.
According to him, a modern refinery with latest technology could be less cumbersome in operations and even cost effective than the old ones.
The rehabilitation of the refinery according to the Minister of State for Petroleum Resources, Chief Timipre Sylva, will be carried out in three phases of 18, 24 and 44 months.
The contract for the rehabilitation approved by the Federal Executive Council (FEC) was given to an Italian company, Tecnimont spa, with funding from the Nigerian National Petroleum Corporation (NNPC).
He told newsmen, “The Ministry of Petroleum Resources presented a memo on the rehabilitation of Port Harcourt refinery for the sum of $1.5 billion, and it was approved by council today. So, we are happy to announce that the rehabilitation of Port Harcourt Refinery will commence in three phases. The first phase is to be completed in 18 months, which will take the refinery to a production of 90 per cent of its nameplate capacity. The second phase is to be completed in 24 months and the final stage will be completed in 44 months and the contract was approved.
“The contractor that was approved by council today is Messrs. Tecnimont spa, an Italian EPC company, that won the bid and that was approved by the council.”
Experts who spoke to SHIPPING DAY on the latest movement said government could have decided for a brand new refinery than the rehabilitation of the old ones with a lot of technical issues involved.
A petroleum engineer who pleaded anonymity said it was better to go for a brand new refinery than to embark on rehabilitating the old ones, explaining that technology is changing by the day in which case it could be more expensive to run the old refineries than new ones.
According to him, a modern refinery with latest technology could be less cumbersome in operations and even cost effective than the old ones.
The rehabilitation of the refinery according to the Minister of State for Petroleum Resources, Chief Timipre Sylva, will be carried out in three phases of 18, 24 and 44 months.
The contract for the rehabilitation approved by the Federal Executive Council (FEC) was given to an Italian company, Tecnimont spa, with funding from the Nigerian National Petroleum Corporation (NNPC).
He told newsmen, “The Ministry of Petroleum Resources presented a memo on the rehabilitation of Port Harcourt refinery for the sum of $1.5 billion, and it was approved by council today. So, we are happy to announce that the rehabilitation of Port Harcourt Refinery will commence in three phases. The first phase is to be completed in 18 months, which will take the refinery to a production of 90 per cent of its nameplate capacity. The second phase is to be completed in 24 months and the final stage will be completed in 44 months and the contract was approved.
“The contractor that was approved by council today is Messrs. Tecnimont spa, an Italian EPC company, that won the bid and that was approved by the council.”
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