Review of NNPC activities for April 5 – April 11, 2021

Agency Reporter

The Nigerian National Petroleum Corporation (NNPC) started its week with the signing of 1.5 billion dollars Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract for the rehabilitation of the 210,000 barrels per day capacity Port Harcourt Refinery (PHRC) in Alesa-Eleme, Rivers State.

The signing of the contract was in pursuant of President Muhammadu Buhari’s promise to Nigerians that its refineries would be rehabilitated for full operation to boost local refining of crude oil for economic growth and development.

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 1.5 billion dollars, inclusive of VAT and other statutory payments.

The Group Managing Director of the NNPC, Malam Mele Kyari, described the PHRC rehabilitation project as a dream come true, noting that the project was in line with President Buhari’s promise to Nigerians to make the refineries work.

He 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 that the same transparent process has been put in place for the rehabilitation of the Warri and Kaduna Refineries whose EPCIC contracts would be awarded in June 2021.

Meanwhile, stakeholders in the industry have commended the corporation over the signing of the contract and effort to ensure in-country refining of crude oil.

Petroleum Products Retail Outlets Owners Association of Nigeria, (PETROAN), in a commendation letter to the GMD urged the corporation to continue to support moves that would bring development in the oil and gas sector.

The corporation, in the week under review also partnered the Nigerian Railway Corporation (NRC) for the Haulage of Ajaokuta Kaduna Kano (AKK) Gas Pipes.

The News Agency of Nigeria (NAN) reports that the haulage of AKK gas pipes from Warri to Itakpe would serve as a major boost in the delivery of the AKK gas project.

NRC commenced the first transportation of the AKK gas pipes recently on its standard gauge line, the first time that pipes would be transported through rail lines in Nigeria.

Kyari who congratulated the Corporation’s team on the arrival of the AKK gas project line pipes by rail from Warri to Itakpe, added that it was cost effective, faster in delivery, safer and protecting the nation’s roads.

He said that the infrastructure revolution was paying off as the locomotive carried 96 pipes at once, an equivalent of 32 trailers on the road.
Knowing the importance of air transportation and the aviation sector to the national economy, the corporation further made a giant move over the week to handover management of Osubi Airstrip to the Federal Airport Authority of Nigeria (FAAN) for smooth and safe operations for commuters.

The Osubi Airstrip was commissioned on April 17, 1999 by the Joint Venture between NNPC and Shell Petroleum Development Company Limited (SPDC) as part of their Corporate Social Responsibility programmes.

The Group General Manager, National Petroleum Investment Management Services (NAPIMS), Mr Bala Wunti, who was represented by the Manager Joint Venture Supply Chain Management, Mr Lawrence Amaechi, said the handover of the airstrip was geared towards ensuring effective and efficient operations of the facility by FAAN.

The Osubi Airstrip in Warri, Delta State was built and Operated by SPDC until 2015, when it transferred its 45 per cent shares to another JV Partner, Shoreline, while NAPIMS managed the 55 per cent share on behalf of NNPC.

Furthermore, the corporation reiterated its commitment to boost biofuel in the country and reassured strong commitment with its partnership with the Kebbi State government in that regard.

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The NNPC GMD Malam Mele Kyari, while receiving the Governor of Kebbi State, Sen. Atiku Bagudu, who paid him a courtesy visit in his office, said the cassava production programme in the state was a definite boost to the biofuels project.

Kyari assured that the linkage of the agricultural sector with the energy sector would facilitate economic growth and bring prosperity to the citizens.

“We will go ahead and renew the Memorandum of Understanding and bring in any necessary amendment that is required to make this business run faster,” the GMD said.

Kyari also hinted of the Corporation’s plan to resume active exploration activities in the Sokoto Basin.

Earlier in his remarks, the Kebbi State Governor expressed appreciation to the NNPC for its cooperation on the biofuel project.

He said the cassava programme was well on course but the same cannot be said of the sugarcane programme as the targeted milestone was yet to be attained.

Governor Bagudu assured the GMD of his commitment to the success of the project.

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