The Federal Executive Council (FEC) on Wednesday approved $1.5 billion contract for the rehabilitation of Kaduna and Warri refineries.
This is even as the Council also ratified $.2.76 billion for the Federal Government’s equity in Dangote Petroleum and Petro-Chemical Refinery.
The Kaduna and Warri refineries have remained in comatose for over four years, despite billions of Naira being spent yearly to pay personnel salaries and emoluments as well as secure the facilities from vandalism.
Minister of State for Petroleum Resources, Timipre Sylva, gave this hint while briefing State House correspondents on the decisions taken at the virtual FEC meeting presided over by the Vice President, Prof. Yemi Osinbajo, at the Presidential Villa in Abuja.
Sylva said the government also approved the acquisition of 20% minority stake in Dangote Petroleum and Petro-Chemical Refinery for the sum of $2.76 billion, by Nigerian National Petroleum Corporation (NNPC).
He clarified: “The FEC, today, approved the award of contract for the rehabilitation of Warri and Kaduna Refineries at the combined total sum of 1.5 billion dollars – 897. 67 million dollars for Warri Refinery and 586. 9 million dollars for Kaduna Refinery.
“The Executive Council also approved the acquisition of 20 per cent minority stakes by the NNPC in the Dangote Petroleum and Petro-Chemical Refineries in the sum of 2.76 billion dollars.
“The completion of the rehabilitation of the Warri and Kaduna Refineries is going to be in three phases. First phase is within 21 months; in 23 months, phase 2 will be completed and in 33 months, the full rehabilitation will be completed.
“Work has already commenced in Port Harcourt; already the first 15 per cent of the contract sum has been paid to the contractor and contractor has fully mobilized to site”, the minister added.
