NNPC signs $1.5billion contract for rehabilitation of PH Refinery




From Left- Vice President, Sub-Saharan Africa Region of Tecnimont SpA, Davide Pelizzolam Managing Director of the NNPC, Mallam Mele Kyari and Engr. Ahmed Dikko, Managing Director, Harcourt Refining Company at the signing ceremony  of $1.5billion PHRC Rehabilitation project. 

To Award Warri, Kaduna Refineries Rehab EPC in June

The drive by the Management of the National Petroleum Corporation (NNPC) to boost in-country refining capacity was bolstered on Tuesday with the signing of the Engineering, Procurement, Construction, and Commissioning (EPCIC) contract for the rehabilitation of the 210,000 barrels per day capacity Harcourt Refinery in Alesa-Eleme, Rivers .


The rehabilitation project which has a completion timeline of between 18 and 44 months under a three-phase arrangement was awarded to Milan based Tecnimont SpA at a lump sum contract price of US$1.5 billion, inclusive of VAT and other statutory payments.
An elated Managing Director of the NNPC, Mallam Mele Kyari, described the PHRC rehabilitation project as a dream come true, noting project was in line with President Buhari’ promise to the to make the refineries work.


Mallam Kyari reiterated that in arriving at the choice of Tecnimont SpA, the Corporation embarked on a transparent tender process which can withstand any forensic audit, noting that NNPC was ready and open to answer any question pertaining to the project.
He assured same transparent process has been emplaced for the rehabilitation of the Warri and Kaduna Refineries whose EPCIC contracts would be awarded in June 2021.


The GMD explained rehabilitation exercise was very different from a routine Turn-Around Maintenance as it would entail a total retrofitting of the plant with major part and equipment replaced with new ones.
Providing further insight the project, Managing Director of Harcourt Refining Company Limited, Engr. Ahmed Dikko, explained that Phases 1 and 2 of the project would get the refinery ready to receive hydrocarbon, while Phase 3 will focus on the start-up the refinery for operation, stressing that the entire work shall be delivered in 44 months from today.
In his remarks, Vice President, Sub-Saharan Africa Region of Tecnimont SpA, Davide Pelizzola, pledged the readiness of his company to work assiduously with the NNPC to comply with the terms and obligations of the contract.


The signing ceremony of the PHRC rehabilitation project was witnessed by the Nigeria Extractive Industries Transparency (NEITI), Infrastructure Concession Regulatory Commission (ICRC), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers NUPENG amongst others.