South Korean Firm, Daewoo to Rehabilitate Kaduna Refinery as Nigeria Signs New Oil Deal
- The Nigerian government has engaged a South Korean company to rehabilitate the Kaduna Refinery
- The contract is coming at the World Bio Summit in South which President Buhari is attending
- Daewoo, the South Korean firm, will rehabilitate the refinery as another Italian firm is already working on the Kaduna Refinery
The Nigerian government has made a deal with South Korea.
Business Insider reports that a spokesperson for the Nigeria National Petroleum Company Limited (NNPC) stated on Thursday, October 27, 2022, that the company had finalised a deal with Daewoo Group of South Korea to rehabilitate the Kaduna Refinery.
Source: Getty Images
Kaduna to produce 110,000 Bpd
According to the spokesperson, President Muhammadu Buhari approved the signing by the side of the 2022 World Bio Summit on Thursday in Seoul, South Korea.
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Nigeria imports refined petroleum products, despite owning several refineries.
The Kaduna refinery has 110,000 barrels per day production capacity and is one of the four dormant refineries.
President Buhari said that he understands the competence of Daewoo and that the firm has massive investments in automobile, maritime and other sectors of Nigeria’s economy.
Port Harcourt refinery to come on stream soon
Buhari also stated that Daewoo is engaged in executing the NLNG train seven project and constructing sea-going LPG vessels for NNPC and its partners.
One of the biggest refineries in Nigeria, the Port Harcourt Refinery, is undergoing repairs by an Italian firm, Technimont.
Nigeria expects the plant to start oil production by December.
Nigeria’s Federal Executive Council approved the contract award for rehabilitating the Warri and Kaduna refineries at $1.5 billion.
Fuel scarcity: What Nigerians should expect in 2023 if subsidy is removed
Recall that Legit.ng reported that currently, fuel is sold for N175 per litre because the federal government is paying billions of naira monthly to make it affordable, a Business Insider report says.
This means consumers are paying more to buy a litre of fuel for their cars or to power their generator sets in cases of electricity outages.
The government pays more than 50 percent of the true cost of petrol consumed by Nigerians at petrol stations.
Source: Legit.ng
