Ahead of the full implementation of its Refinery Project in Port Harcourt Rivers State, African Refineries Port Harcourt Limited (ARPHL) has announced the award of Phase 1 contract for the colocation of a Greenfield Refinery to Messrs Tecnimont SpA.

Chief Executive Officer, ARPHL, Omotayo Adebajo said the engagement followed the conclusion of negotiations with the Nigerian National Petroleum Corporation (NNPC) to acquire a 10 per cent equity stake in ARPHL’s 100,000 barrel per day refinery at the same location.

The Front-End Engineering Design (FEED) Contract is the first step towards implementing a plant for the processing of up to 100,000 barrels per day of crude oil.

The plant will be developed at the Port Harcourt Refinery Battery Limited due to be operational in 2025.

Messrs Tecnimont SpA, a leading global oil and gas refining, chemical and petrochemical, fertiliser and power EPC company will act as the FEED contractor for the refinery.

The 100,000bpd name plate capacity refinery will process crude oil and produce Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Jet A-1, Liquefied Petroleum Gas (LPG), and Low Pour Fuel Oil (LPFO).

Based on the Federal Government’s plan, the NNPC in 2016 advertised a Request for Proposal in major newspapers, seeking bids for private investors to invest in the collocating of crude oil refineries within its refinery sites in Kaduna, Port-Harcourt and Warri, towards increasing Nigeria’s national refining capacity from 445,000bpd to 695,000 bpd in the shortest time.

By a bid conducted by NNPC in-line with the Bureau of Public Enterprise (BPE) guidelines, ARPHL emerged the collocation partner to run and operate a 100,000bpd refinery on 45 hectares within the battery limit of the PHRC in Alesa-Eleme, Rivers State.

In response to the new business reality post-COVID-19, ARPHL and NNPC reviewed the original plan to relocate a brownfield crude oil refinery and will now construct a 100,000 bpd Greenfield refinery to be installed adjacent to the 210,000 bpd Port Harcourt Refinery Complex.

The project is scheduled to be completed within three years.

This project is an integral part of NNPC’s plan to upgrade the network of its mid-stream and downstream assets in South-South and South-East Nigeria, that includes the refurbishment of the Port Harcourt Refineries and the various crude oil/petroleum pipelines, NNPC tank farms and oil depots.

This is a project that would employ at least 15,000 Nigerians during construction and another 2,000-post construction aligning with the local content regulations beneficial to the Nigerian people and the Nigerian economy in general.

Under the terms of the agreement with NNPC, ARPHL will be solely responsible for private sector led efficient and sustainable management, operations, and maintenance of the refinery upon completion. This marks another major step towards fulfilling NNPC’s promise and commitment to support and boost domestic refining capacity required for Nigeria to become a net exporter of petroleum products.

FreeStuffsNG:
This is commendable. The new refinery should never pump its refined products through the existing oil pipelines.

GeneralDae:
Buhari seem to have started almost everything in his second tenure.

Siemens
AkK
2nd Niger Bridge
Rehabilitation of refineries, etc.

What da hell was he doing in his first term? Same man took 6 months to appoint his first ministers.