The Nigerian National Petroleum Corporation on Wednesday said it had engaged the services of in-house engineers to rehabilitate the country’s three ailing refineries at a cost of $550m (N99bn), down from the $1.6bn (N288bn) presented to it by foreign contractors.

The refineries are the Port Harcourt Refining Company, Kaduna Refining and Petrochemical Company Limited and the Warri Refining and Petrochemical Company Limited.

The Group Executive Director, Refining and Petrochemicals, NNPC, Mr. Ian Udoh, stated that the corporation resolved to use indigenous engineers because it could not pay the bills of foreign contractors who were nominated by the original builders of the refineries.

Udoh spoke during a press briefing organised by the corporation to refute claims that it was indicted by the report of the forensic audit carried out on its operations by PriceWaterhouseCoopers.

He said, “For the three refineries, the estimates going with the nominees of the original builders of the refineries would have come up to $1.6bn. But we can’t afford that because we are not going to get any funding from the government for that.

“We examined the work scope and picked up the essential things that we must do to get these refineries to operate optimally at around 90 per cent of capacity. That was done and we did the pricing template; not the international rates, we used the local rates. And everything for the three refineries combined came to around $550m, which is significant, maybe up to 70 per cent reduction.

“Even the $550m is quite much. So, we amortised it over 18 months so that we will be able to swallow it in bits more easily. The 18 months started since last October and this means that early next year, the refineries should be in shape.”

He stated that the original builders of the refineries were not willing to come to Nigeria but nominated their partners to handle the turnaround maintenance of the facilities.

The partners, according to Udoh, are not willing to give post rehabilitation performance guarantee, adding that their prices were exceedingly high.

He said, “So, a new pact had to be taken, which is more affordable for the NNPC, that is, to rehabilitate all the refineries simultaneously, resorting more to what is locally available. And these include the in-house engineers and such contractors that have been working with us all these years who are familiar with the plant.

“Part of that plan is that if there is any challenging big equipment, we resort to the original manufacturers to send a representative to join our engineers on the ground to carry out whatever is needed to be done.”

Earlier in his address, the Group Managing Director, NNPC, Dr. Joseph Dawha, had explained that the $1.48bn, which PwC directed it to remit to the Federation Account, was the balance of the book value of the divested assets that were transferred to the Nigerian Petroleum Development Company, excluding taxes and royalties.

“This value is still being reconciled with the Department of Petroleum Resources,” he added.

He stated that what the DPR sent to the corporation as the estimated value of the assets was $1.847bn, out of which the NNPC paid over $300m as a token to indicate its commitment to acquiring the assets pending resolution and reconciliation by both organisations.

On why the NNPC had not been able to tackle pipeline vandalism despite installing electronic monitoring gadgets on them, the corporation’s Group Executive Director, Engineering and Technical, Mr. Adebayo Ibirogba, stated that the technology might detect immediately where a pipeline had been blown up, but the ability to respond speedily was an issue.

http://www.punchng.com/business/business-economy/nigerian-engineers-to-repair-refineries-for-n99bn-nnpc/

Make I go buy spanners and pliers....

Epic lie ooooo... sha I get spanner for house how I go take apply?

Atleast they should be giving us update so Nigerian know what is going on

Ok

What were they thinking before? For how long? PDP politicize everything in this country.

Like it or not, Otuoke straight!

Nigeria Engineers Indeed

Nigerian engineers ? If this is true, even if they are paid $1B, no problem as long as they are our own local engineers and can deliver

Just among the first page today

Since Five Years Ago! Anyways, Jonah Is Going!

Seriously, Nigeria have the money to repair and even build new refineries but she will not...why?

Because the leaders are after there own selfish interest.
They have there own refineries outside the Nation

I don't know what the nation actually needed now ..... is either they need change or transformation.
Hit
Like for change
Share for transformation

Good...but by now we should have graduated to building refineries....by Nigerian companies.

Abeg make am 100b Naira. The way we talk about billions in this country ehh

Yesterday na trillion we need for power, now na billion we need to repair refineries . Hope all is well in Nigeria?

Come March na
General March 4 Buhari.
Corruption must stop and all sectors must work in Nigeria.

Am an engineer pls employ me oooooo

Then don start again

How much does it cost to build a new one if repairs could cost this much?

Scam alert! Beware of the cabals

Are nigerian engineers capable?

eagleeye2:
Abeg make am 100b Naira. The way we talk about billions in this country ehh

billion here doesn't hv values, jst common slant

Elslim:
Epic lie ooooo... sha I get spanner for house how I go take apply?

Indigenous engineers are evolving & achieving incredible results. If given better operating environment they will do more...

Local content. I admire that. Getting interesting. No to capital flight. So long as it is done by certified members of NSE I am good with that. We will get there someday, no big deal.

contract time , blessing time

hotgunz:
Am an engineer pls employ me oooooo

Lol.
Tell us what you will offer. What exactly will you do for them?

ok.

Yes oooo. Am Also available afterall all foreign Engineer get more than that.Let support our own oooo. The money is reasonable now.

GEJ Telling the truth and trying is Best since 1908 when he had no Shoe till date .

wow!! and to think that 21 billion naira was generated in less than 24 hours for a stupid presidential campaign, whereas our refinaries have been in shambles for years...chai!!what's the way forward my people!!

Sipin origin

Thieves don come again.

I don't just trust these people at all from GEJ to the most junior official in his cabinet.

In GEJ"c Voice...
You people have been shouting "Change" "Change" and INEC Changes the election date...
What else do you want?

Sheu