Why we prefer to repair Port Harcourt refinery than build new one – NNPC

The Nigerian National Petroleum Corporation (NNPC) has said that the country does not have the financial capacity now to build a new refinery going by the economic situation of the country.

Mele Kyari, NNPC Group Managing Director, disclosed this on Monday in Abuja while engaging journalists on issues emanating from the proposed rehabilitation of the Port Harcourt refinery approved by the Federal Government last week.

Mr Kyari said building a new refinery now would cost the country about $10 billion which is far beyond the $1.5 billion earmarked for the rehabilitation of Port Harcourt refinery.

He also said the country would have to live with importation of petroleum product, especially petrol, for another four years if the country ventures into building a new refinery.

“We have people saying why not build a new one; why will you repair an old refinery with $1.5 billion? The fact is available even by Google search, what it takes to build a refinery of this status today.

“It will be difficult for the country to build a new refinery as it will take four years for it to commence production.

“It is around $7 billion and $12 billion to construct a refinery of this nature (Port Harcourt refinery).

“This is the estimate you see in public space and there are things you do outside the construction battle-limits like the utilities that are never accounted for when estimates of this nature are done.

“Typically, there is an additional 25 per cent cost for construction battle-limits, so, when you say a refinery can be built at $7 billion or even 10 billion dollars, also think of that 25 per cent.

RelatedNews
Halt plan to renovate Port Harcourt refinery with $1.5 billion – Peterside tells FG
Of Dangote and Near Absolute Monopolies, By Cheta Nwanze
$1.5 billion to renovate Port Harcourt refinery ‘suspicious’ — Atiku
Eight quick things to know about Port Harcourt Refinery

Port Harcourt Refinery
Port Harcourt Refinery
“With today’s estimate, you cannot build a refinery at any cost below these amounts, that means that the option you have is to scrap this and build a new one, and we all know that we don’t have that resource.

“If we start a new refinery of this nature today, it can’t work in less than four years, therefore, it means we will continue to import petroleum products in the next four years or more,” Mr Kyari said.

According to him, the country did not do well in maintaining the refineries in the past 25 years as the last turnaround maintenance of the Port Harcourt refinery happened 21 years ago.

Dangote adbanner 728x90_2 (1)

He noted that the huge cost of rehabilitation of the refinery witnessed in this present time was as a result of poor maintenance of the plant over a period of time.

“What we are seeing today is the cumulative effect of our lack of doing proper maintenance over a period of time but something has changed today and this is why we are proud to tell Nigerians that we have done something different in the background.

“This is because we have a government that allowed us to play our role without interference in terms of our procurement exercises and this made the process go unhindered.

“This has also allowed us to involve every stakeholder including NUPENG and NEITI, to ensure openness and accountability of the process,” he said.

(NAN)

WhatsApp
TweetEmail
PrintTelegram
More
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
DONATE

TEXT AD: To advertise here . Call Willie +2347088095401…

JOIN THE CONVERSATION
(0)

PT Mag Campaign AD

Previous Post
NPFL Round Up: Kwara United thrash Adamawa United
Next Post
Nigeria obtains $1 billion loan to support MSMEs— Minister
Agency Report
Agency Report
More News
Badits [Picture credit: ndlink.org]
Police arrest suspected motorcycles supplier to Zamfara bandits
March 23, 2021
Guaranty Trust Bank (GTB) Plc
GTB plans to acquire Kenyan bank
March 23, 2021
One of the Artisans, Gibson Ogugua working on Aluminium frames for the buildings during the inspection tour of the Hon. Minister of Power, Works & Housing, Mr Babatunde Fashola, SAN to the National Housing Programme site in Ebonyi State on Friday 18th May 2018.
Nigeria obtains $1 billion loan to support MSMEs— Minister
March 23, 2021
Logos of some Nigeria’s financial technology companies
Nigeria’s booming fintech space, and its top 13 players
March 23, 2021
President Muhammadu Buhari received the New Members of APC- Former Governor of Ogun State, Otunba Gbenga Daniels and Former Speaker, Hon. Dimeji Bankole at the State House, Abuja.
UPDATED: Buhari receives Bankole, Gbenga Daniel at Aso Rock
March 22, 2021
Naira notes used to illustrate market trading
Naira loses as Nigerian govt adopts flexible exchange rate policy
March 22, 2021
Discussion about this post
Search
#EndSARS: Latest Updates

Polaris Bank

JAIZ Ad

Access Bank Ad

NITDA Ad

Glo Ad

Subscribe to News via Email
Enter your email address and receive notifications of news by email.

Join 1,639,403 other subscribers.

Email Address
Email Address

Subscribe

Advertisement

netherland biz school Advert

Zenith Advert

ADVERTISEMENT
Our Digital Network
PT Hausa
Election Centre
Human Trafficking Investigation
Centre for Investigative Journalism
National Conference
Press Attack Tracker
PT Academy
Dubawa
LeaksNG
Campus Reporter
Resources
Oil & Gas Facts
List of Universities in Nigeria
LIST: Federal Unity Colleges in Nigeria
NYSC Orientation Camps in Nigeria
Nigeria’s Federal/States’ Budgets since 2005
Malabu Scandal Thread
World Cup 2018
Panama Papers Game
Our Digital Network About Us Resources Projects Data & Infographics
DONATE
All content is Copyrighted © 2020 The Premium Times, Nigeria

Search…

Home
COVID-19
News
Investigations
Business
Agriculture
Arts/Life
Sports
Projects
Opinion
PT Hausa
The Membership Club
Dubawa
About Us
Careers
Contact Us
Digital Store
DONATE
All content is Copyrighted © 2020 The Premium Times, Nigeria

The post Why we prefer to repair Port Harcourt refinery than build new one – NNPC appeared first on NEWS.

Source