August 9, 2022

African Refineries Port Harcourt Restricted (ARPHL) has introduced the award of the Section 1 contract for the colocation of a Greenfield Refinery to Messrs Maire Technimont SpA, a number one international Oil & Gasoline Refining, Chemical & Petrochemical, Fertilizers and Energy EPC firm because the FEPC contractor, forward of the complete implementation of its Refinery Challenge in Port Harcourt Rivers State.

The refinery would course of Nigerian crude oil and create Premium Motor Spirit (PMS), Automotive Gasoline Oil (AGO), Jet A-1, Liquefied Petroleum Gasoline (LPG), and Low Pour Gasoline Oil at a price of 100,000 barrels per day (bpd) (LPFO).

This comes after ARPHL and NNPC reached an settlement to purchase a ten% possession stake in ARPHL’s 100,000 BPD refinery on the identical location. This was stated recently by ARPHL’s Chief Government Officer, Mr. Omotayo Adebajo.

The Entrance-Finish Engineering Design (FEED) Contract is the preliminary step towards constructing a plant on the present Port Harcourt Refinery Battery Restrict that may course of as much as 100,000 barrels per day of crude oil and 10,000 barrels per day of sustainable aviation gasoline or Biojet. The plant is scheduled to open in 2025.

In 2016, the Nigerian Nationwide Petroleum Company (NNPC) marketed a Request for Proposal in all main newspapers, in search of bids for personal traders to spend money on the collocation of crude oil refineries inside its current refinery websites in Kaduna, Port Harcourt, and Warri, so as to enhance Nigeria’s nationwide refining capability from 445,000BPD to 695,000BPD within the shortest attainable timeframe, in step with the Federal Authorities’s strategic plan.

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ARPHL was chosen because the collocation associate to run and function a 100,000 BPD refinery on 45 hectares of vacant land inside the battery restrict of the Port Harcourt Refinery Complicated (“PHRC”) in Alesa-Eleme, Rivers State, following a clear bid course of carried out by NNPC in accordance with the Bureau of Public Enterprise (BPE) pointers.

On account of the brand new enterprise actuality introduced on by COVID-19, ARPHL and NNPC have revised their authentic plan to relocate a brownfield crude oil refinery and can now construct a 100,000 bpd greenfield refinery adjoining to the prevailing 150,000 bpd Port Harcourt Refinery Complicated. The challenge is predicted to take three years to finish.

The challenge is a part of NNPC’s plan to improve its mid-stream and downstream belongings in South-South and South-East Nigeria, which incorporates refurbishing the Port Harcourt Refineries and varied crude oil/petroleum pipelines, NNPC tank farms, and oil depots. This can be a challenge that may make use of not less than 15,000 Nigerians throughout development and one other 2,000 afterward, in accordance with native content material rules that may profit the Nigerian individuals and financial system.

Following the completion of the refinery, ARPHL will probably be solely chargeable for the refinery’s efficient and sustainable administration, operations, and upkeep, as stipulated within the settlement with NNPC. This can be a important step towards NNPC’s objective and dedication to help and enhance native refining capability, which is important for Nigeria to change into a internet exporter of petroleum merchandise.