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Okays acquisition of 20% stakes in Dangote refinery
By Egena Sunday Ode
The Federal Government has approved $1.484 billion for the rehabilitation of Warri and Kaduna refineries.
Of the sum, $897,678,800 will be spent to repair Warri refinery while Kaduna refinery will gulp $586,902,256 for maintenance.
Also, approval has been given by the Federal Government for the acquisition of 20% minority stakes by the NNPC in Dangote Petroleum and Petrochemical Refinery in the sum of $2.76 billion.
Minister of State for Petroleum Resources, Timperley Sylva, made this disclosure to State House correspondents at the end of the weekly Federal Executive Council (FEC) meeting held at the Aso Rock Presidential Villa, Abuja on Wednesday.
According to him, 15 percent of the total sum for the rehabilitation of the two refineries in Port Hacourt which was awarded earlier this year had been paid to the construction firm currently working at site, thereby raising hopes that the four refineries in the country may soon become fully functional.
The Minister said the FEC meeting approved the award of contracts for the rehabilitation of Warri and Kaduna refineries to Messers Saipem SPA and Saipem Contracting Limited at the combined total sum of $1.484 billion.
He stressed that the completion of the rehabilitation exercise will be in three phases spread over 77 month period.
He said: “The completion of the rehabilitation of Warri and Kaduna refineries is going to be in three phases. First phase will be completed within 21 months, in 23 months phase two will be completed and in 33 months, the full rehabilitation will be completed”.
On PortHacourt refinery, Sylva noted that the repair work had commenced adding that already the first 15% of the contract sum has been paid to the contractor and the contractor was fully mobilised to site.
“We also discussed in council the need for us to give periodic updates. Soon, we’ll be going to inspect the work in Port Harcourt refinery, and you will all be with us on that visit.”
