The Federal Executive Council (FEC) has approved the awards of contracts for the rehabilitation of Warri and Kaduna refineries in Nigeria to the Italian company Saipem for US$1.5bn. The installed capacities of Warri and Kaduna refineries, operated by Nigerian National Petroleum Corporation, are 125,000 bbl/d and 110,000 bbl/d. The project should be completed in three phases of 21, 23, and 33 months. In addition, the FEC has authorised NNPC to acquire a 20% stake in the 650,000 bbl/d Dangote refinery in Lekki Free Zone, near Lagos, for US$2.76bn. The US$19bn project is expected to be commissioned in early 2022.
The federal government recently ordered the mandatory participation of the NNPC in any privately-owned refinery that exceeds 50,000 bbl/d. The country stopped producing oil products in 2020 as most of its refineries were idle. Consequently, Nigeria imported 18 Mt of refined products to cover its entire domestic consumption. In April 2021, the NNPC signed a US$1.5bn contract with the Italian company Maire Tecnimont to rehabilitate the Port Harcourt refinery. The contract is aimed at restoring the complex to a minimum of 90% of its nameplate capacity. The project should be completed in three phases of 18, 24, and 44 months.
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