NNPC, Tecnimont SpA sign contract for $1.5bn PH refinery rehabilitation

The Nigerian National Petroleum Corporation (NNPC) has signed an Engineering, Procurement and Construction (EPC) Contract with Italian multinational, Maire Tecnimont SPA, for the rehabilitation of Port Harcourt refinery.

At the signing ceremony on Tuesday, Ahmed Dikko, managing director of Port Harcourt Refinery Company (PHRC), signed for the refinery, while Davide Pellizola signed for Tecnimont SpA, contractor for the project.

The project entails EPC activities for a full rehabilitation of the Port Harcourt Refinery Complex, aimed at restoring the complex to a minimum of 90 percent of its nameplate capacity.

The complex is composed of two refineries totalling an overall capacity of approximately 210,000 bpd (barrels per day). The project will be delivered in phases from 24 and 32 months and the final stage will be completed in 44 months from the award date.

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The Phase 1 Rehabilitation contract is worth approximately $50 million and entails a six-month assessment at the site with relevant engineering and planning activities for the Port Harcourt Refinery Complex.

The equipment inspections and integrity check are preparatory to a second phase which entails a full rehabilitation of the complex, aimed at restoring the refining capacity to a minimum of 90 percent of capacity utilisation.

The second phase, subject to the successful completion of the integrity check, will be carried out on an EPC basis by Tecnimont and Tecnimont Nigeria, in collaboration with a partner, possibly a Nigerian company, as the NCDMB is part of the process to incorporate local content into the project.

The two-phase revamping project is strategic to the development of the Nigerian hydrocarbons downstream sector, by ramping up its in-country refining capacity, while upgrading processes and ensuring higher-quality, value-added products.

Maire Tecnimont and its subsidiaries have been awarded dozens of refinery repair contracts from Europe to Asia and Africa. It is the EPC company of choice for many African refineries.

In 2019, Maire Tecnimont’s subsidiary KT – Kinetics Technology was awarded an EPC (Engineering, Procurement, and Construction) contract from a subsidiary of ENI in Angola. Eni has a cooperation agreement with Sonangol to realise upgrading projects of the Luanda Refinery.