The Nigerian National Petroleum Company Limited has signed an agreement with Daewoo Group of South Korea for the rehabilitation of the Kaduna Refinery, the government said Thursday.
Spokesperson for President Muhammadu Buhari, Femi Adesina said in a statement that the agreement was signed on the sidelines of the 2022 World Bio Summit on Thursday in Seoul, South Korea.
Buhari is attending the summit.
The 110,000 bpd-capacity Kaduna Refinery is one of Nigeria’s four dysfunctional refineries that have produced no fuel for years leaving the country to rely on imported products.
It recorded a N22.9 billion loss in 2021.
The biggest state-run refinery, which is Port Harcourt, is currently undergoing repairs handled by Tecnimont of Italy.
The government says it expects the plant to start production by December, although a PREMIUM TIMES review showed that is unlikely.
The Federal Executive Council in August last year approved the award of the contract for the rehabilitation of Warri and Kaduna Refineries at the combined total sum of $1.5 billion.
Femi Adesina said Daewoo is also repairing the Warri plant which will at the first instance deliver fuel before the first half of 2023.
At the signing of the agreement, Buhari was quoted as saying “Daewoo Group has massive investments in the automobile, maritime and other sectors of our economy.”
“I am also aware that Daewoo is currently engaged in the execution of the NLNG train seven project and also constructing sea-going LPG vessels for NNPC and her partners,” he was quoted as saying.
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Buhari said he looked “forward to the delivery of ongoing projects, especially at the Warri and Kaduna refineries, and the NLNG Train Seven.”
“This no doubt will open many more windows of opportunities for Daewoo and other Korean companies in Nigeria.”