The Nigerian National Petroleum Company Limited (NNPCL) has signed a $741 million deal with Daewoo Engineering and Construction Company to repair the Kaduna Refinery and Petroleum Company (KRPC). This was disclosed in a statement by the NNPC which stated that the signing ceremony of the “quick-fix repair” contract was held at the NNPCL Towers in Abuja on Thursday.
According to the statement, “Under the terms of the agreement, Daewoo will restore production at the inoperative 110,000 barrels-a-day facility to at least 60 percent of its capacity at the end of 2024.
“The deal is part of the NNPCL’s efforts to reduce Nigeria’s near total reliance on imported fuel – a long source of embarrassment for the government of Africa’s largest crude producer.
“The NNPCL currently imports the entirety of Nigeria’s gasoline requirements, mainly via crude-for-fuel swaps with local and international traders – which it then sells at a steep loss to retailers and wholesalers.”
The statement further disclosed that the NNPC; through a mixture of its own revenue and third-party financing, would finance the repairs on the KRPC.
