Once again, FG looks to original builders of refineries for restoration

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The Minister of State for Petroleum, Dr. Ibe Kachikwu, has disclosed that the federal government is again contemplating inviting the original builders of the three refineries operated by the Nigerian National Petroleum Corporation (NNPC) in Kaduna, Warri and Port Harcourt, to undertake their planned restoration to their nameplate capacities, ThisDay reports.

Kachikwu said there was a consensus within the government circles that the original refineries builders (ORBs), which are Saipem for Warri; JGC for Port Harcourt; and Chiyoda for Kaduna, should be invited to undertake the repairs as a result of their better knowledge of the refineries.

Collectively, the refineries which were built in the 1980s’ have a refining capacity of 445,000 barrels per day, with which the government regularly allocates this volume of crude oil to the NNPC for domestic refining.

In the past, the government had mulled the idea of engaging the refineries ORBs in its repeatedly failed turnaround maintenance (TAM) exercises, but past reports also indicated that discussions with the ORBs often broke down on the basis of either security concerns, financing models, and in most cases, reported commitments from the government.