The Nigerian National Petroleum Corporation said on Thursday that the country would be producing about 400,000 of refined petroleum products every day when it completes the current rehabilitation of the three refineries in the country by the first quarter of next year.
The Coordinator, Corporate Planning and Strategy, of the NNPC, Dr. Tim Okon, stated this while defending the budget of the agency before the Senate Committee on Petroleum Resources (Downstream).
Okon, in company of the Group Managing Director of NNPC, Mr. Joseph Dawah, told the senators that the corporation could not afford the bills for their turn around maintenance from the original builders.
Okon said when the corporation invited the builders from Japan and Italy for turn around maintenance, they declined and instead, they recommended SAIPEM, a foreign firm operating in Nigeria to carry out the turn around maintenance on their behalf.
He said while the Port Harcourt and Kaduna refineries were built by two Japanese firm, Chioda and JGC, the Warri Refinery was built by Snapcogetti of Italy.
He said, “The refineries would work again at full capacity, we already have plans to bring them back to perform at full capacity. We have discarded the initial plan of carrying out a comprehensive turn around maintenance initiated in 2011.
“The original builders of the refineries were contacted to handle the contract but they declined and instead recommended their partners in Nigeria to do it. For instance Chioda of Japan and JGC, also from Japan, which built Port Harcourt and Kaduna refineries, recommended Saipem while Snapcogetti, an Italian firm which built the Warri refinery also recommended Saipem.
He said Saipem which was to carry out the turn around maintenance of the Port Harcourt refinery gave the agency a bill of $475m, but later reduced to $297m after further negotiation.
He said the management considered the prices to be on the high side and that given its financial situation, decided to look inward by inviting local contractors that are familiar with the facilities and worked with them.
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