Page 4 - DMEA Week 29 2021
P. 4
DMEA COMMENTARY DMEA
Port Harcourt
rehab to bear fruit
within 14 months
The $1.5bn refinery rehabilitation project is expected to begin delivering refined
products by September 2022 as Nigeria seeks to breathe new life into its downstream.
AFRICA STATE-OWNED Nigerian National Petroleum (Afreximbank) in February, NNPC awarded
Corp. (NNPC) this week said that its overhaul an engineering, procurement and construction
of its Port Harcourt refining complex was in full (EPC) contract for the project with Italy’s Maire
WHAT: swing, with the first refined products following Tecnimont in April.
Progress is finally being the repairs expected to be delivered by Septem- The $1.5bn agreement followed a $50mn,
made on work to revamp ber next year. six-month ‘integrity check’ performed by Tec-
the dilapidated Port The unit is scheduled to come back on stream nimont firm in 2019, with fellow Italian firm
Harcourt facility. in stages, with the full project not anticipated to Eni contracted as technical adviser. This work
be completed until late 2024. included equipment inspection at the site, as well
WHY: The staged approach was first announced in as ‘relevant engineering and planning activities’.
A billion-dollar loan was March by Nigerian Minister of State for Petro- Speaking to Nigeria’s Punch daily, NNPC’s
agreed earlier in the year leum Resources Timipre Sylva. However, at head of public affairs, Kennie Obateru, said that
to finance the project and the time he suggested that the Port Harcourt Tecnimont has already mobilised workers to the
Italy’s Maire Tecnimont Refining Co. (PHRC) would return to 90% of its site. “The work is progressing,” he said. “We said
was selected for EPC nameplate 210,000 barrel per day (bpd) capacity it will be completed within 18 to 44 months when
contract. within 18 months. counting from April this year. By 18 months,
The second phase would be completed within some part of the refinery will be producing. The
WHAT NEXT: 24 months and the final stage within 44 months, total rehabilitation job will be completed in 44
NNPC is reducing working he said. In either case, NNPC will welcome any months.”
to find the right balance improvement to its mothballed refining slate. The progress will mark a welcome improve-
between operator and ment for NNPC, whose entire 445,000 bpd refin-
shareholder in the Overhaul ing capacity has been shut in for nearly two years
country’s downstream, Following the agreement of a $1bn loan from following failure to carry out appropriate turn-
though repairing poorly Cairo-based African Export-Import Bank around maintenance (TAM) for four decades.
maintained facilities
appears to have taken
precedence.
P4 www. NEWSBASE .com Week 29 22•July•2021