{"id":12057,"date":"2021-03-23T10:48:35","date_gmt":"2021-03-23T09:48:35","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=12057"},"modified":"2021-03-23T10:48:35","modified_gmt":"2021-03-23T09:48:35","slug":"why-we-prefer-to-repair-port-harcourt-refinery-than-build-new-one-nnpc","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2021\/03\/23\/why-we-prefer-to-repair-port-harcourt-refinery-than-build-new-one-nnpc\/","title":{"rendered":"Why we prefer to repair Port Harcourt refinery than build new one \u2013 NNPC"},"content":{"rendered":"<p>The Nigerian National Petroleum Corporation (NNPC) has said that the country does not have the financial capacity now to build a new refinery going by the economic situation of the country.<\/p>\n<p>Mele Kyari, NNPC Group Managing Director, disclosed this on Monday in Abuja while engaging journalists on issues emanating from the proposed rehabilitation of the Port Harcourt refinery approved by the Federal Government last week.<\/p>\n<p>Mr Kyari said building a new refinery now would cost the country about $10 billion which is far beyond the $1.5 billion earmarked for the rehabilitation of Port Harcourt refinery.<\/p>\n<p>He also said the country would have to live with importation of petroleum product, especially petrol, for another four years if the country ventures into building a new refinery.<\/p>\n<p>\u201cWe have people saying why not build a new one; why will you repair an old <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/03\/22\/port-harcourt-refinery-will-work-in-18-months-timipre-sylva-assures\/\" target=\"_blank\" rel=\"noopener\">refinery<\/a> with $1.5 billion? The fact is available even by Google search, what it takes to build a refinery of this status today.<\/p>\n<p>\u201cIt will be difficult for the country to build a new refinery as it will take four years for it to commence production.<\/p>\n<p>\u201cIt is around $7 billion and $12 billion to construct a refinery of this nature (Port Harcourt refinery).<\/p>\n<p>\u201cThis is the estimate you see in public space and there are things you do outside the construction battle-limits like the utilities that are never accounted for when estimates of this nature are done.<\/p>\n<p>\u201cTypically, there is an additional 25 per cent cost for construction battle-limits, so, when you say a refinery can be built at $7 billion or even 10 billion dollars, also think of that 25 per cent.<\/p>\n<p>RelatedNews<br \/>\nHalt plan to renovate Port Harcourt refinery with $1.5 billion \u2013 Peterside tells FG<br \/>\nOf Dangote and Near Absolute Monopolies, By Cheta Nwanze<br \/>\n$1.5 billion to renovate Port Harcourt refinery \u2018suspicious\u2019 \u2014 Atiku<br \/>\nEight quick things to know about Port Harcourt Refinery<\/p>\n<p>Port Harcourt Refinery<br \/>\nPort Harcourt Refinery<br \/>\n\u201cWith today\u2019s estimate, you cannot build a refinery at any cost below these amounts, that means that the option you have is to scrap this and build a new one, and we all know that we don\u2019t have that resource.<\/p>\n<p>\u201cIf we start a new refinery of this nature today, it can\u2019t work in less than four years, therefore, it means we will continue to import petroleum products in the next four years or more,\u201d Mr Kyari said.<\/p>\n<p>According to him, the country did not do well in maintaining the refineries in the past 25 years as the last turnaround maintenance of the Port Harcourt refinery happened 21 years ago.<\/p>\n<p>Dangote adbanner 728x90_2 (1)<\/p>\n<p>He noted that the huge cost of rehabilitation of the refinery witnessed in this present time was as a result of poor maintenance of the plant over a period of time.<\/p>\n<p>\u201cWhat we are seeing today is the cumulative effect of our lack of doing proper maintenance over a period of time but something has changed today and this is why we are proud to tell Nigerians that we have done something different in the background.<\/p>\n<p>\u201cThis is because we have a government that allowed us to play our role without interference in terms of our procurement exercises and this made the process go unhindered.<\/p>\n<p>\u201cThis has also allowed us to involve every stakeholder including NUPENG and NEITI, to ensure openness and accountability of the process,\u201d he said.<\/p>\n<p>(NAN)<\/p>\n<p>WhatsApp<br \/>\nTweetEmail<br \/>\nPrintTelegram<br \/>\nMore<br \/>\nSupport PREMIUM TIMES&#8217; journalism of integrity and credibility<br \/>\nGood journalism costs a lot of money. 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Mele Kyari, NNPC Group Managing Director, disclosed this on Monday in Abuja while engaging journalists on issues emanating from the proposed rehabilitation of the [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":9763,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[3344,3343,1193,2982],"class_list":["post-12057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-kyari","tag-nigerian-national-petroleum-corporation","tag-nnpc","tag-port-harcourt-refinery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why we prefer to repair Port Harcourt refinery 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