REFINERIES’ TURNAROUND MAINTENANCE TO START FIRST QUARTER 2013

Filed in Business by on November 23, 2012

Refineries’ turnaround maintenance to start first quarter 2013
November 23, 2012 by Stanley Opara

Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke

The long-awaited turnaround maintenance for the country’s ailing refineries will start in the first quarter of next year, with the Port Harcourt plant slated to be attended to first.

Our correspondent gathered that final touches were being put on the bid process for the TAM, as the technical and commercial single bids as well as the repairs are all expected to take off by the first quarter.

Single bids are expected for the repairs because only the original builders of each of the refineries have been commissioned to carry out the TAM.

Speaking to our correspondent on the telephone on Thursday, the spokesperson for the Nigerian National Petroleum Corporation, Mr. Fidel Pepple, confirmed the dateline for the commencement of the maintenance works.

He said in-house estimates for the repairs were currently being finalised.

The Original Equipment Manufacturers are expected to handle the maintenance of the refineries, which are located in Port Harcourt, Warri and Kaduna.

Pepple said, “The OEMs will have to submit their technical bids, which we will verify. The commercial bids will then follow. These are expected to happen in the first quarter of 2013.

“All these will have to go through the process of approval, as well through the Federal Executive Council, and the repairs of the Port Harcourt refinery will start in the first quarter of 2013,” he said.

The Federal Government had said it planned to spend $1.6bn (N251.2bn) on the repair of the three refineries.

The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, had said there were some adjustments in the timelines for executing the TAM.

She said although there were plans to build new refineries, existing ones would still be maintained.

The minister had also said there was a new plan to increase the local refining capacity of the nation’s three refineries to 90 per cent of their installed capacity by 2014.

She explained that the planned TAM and upgrade of the refineries could not hold as earlier scheduled because of the negative travel advisory given by the Japanese authorities to JGC, the original builders of the Port Harcourt Refinery, which stopped its officials from coming for the upgrade and maintenance of the refinery.

“With that hurdle surmounted, we have put in place a new plan complete with new schedules and timelines to bring the refineries back to life and get them to run at higher capacity. The maintenance and upgrade work will start with the Port Harcourt Refinery, which has stayed the longest period without turnaround maintenance,” she had explained.

Alison-Madueke also said the contract for the project would soon be signed and that the rehabilitation and upgrade work would move from the Port Harcourt Refinery to the Kaduna and Warri refineries in that order until the last one “comes on stream by the beginning of the last quarter of 2014.”

The management of the NNPC had recently announced the appointment of new Managing Directors for the Port Harcourt Refining Company and Warri Refining and Petrochemical Company.

According to it, the move is targeted at repositioning the NNPC and its key Strategic Business Units.

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