Nigerian Refineries to Receive $1.6 Billion Turnaround Maintenance

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--A $1.6 billion turnaround maintenance (TAM) of Nigeria's three state-owned refineries will result in them being able to operate at full capacity. The refineries are located at Port Harcourt, Warri and Kaduna. The TAM is set to start in January 2013 and is scheduled for completion in October 2014.

The Port Harcourt refinery has not been in operation, but Warri and Kaduna have been operating at about 25% capacity. The TAM program will begin at Port Harcourt, which has not undergone any major repairs since 2000. This will be followed by work on Warri and Kaduna, reported This Day.

Minister of Petroleum Resources Diezani Alison-Madueke said that more than 75% of the parts needed for the TAM on Port Harcourt had arrived in the country. The original builder had been paid $32 million for renovations, and $147 million would be spent in the initial phase. The cost of modernization would be $406 million.

The minister explained to the senate committee on petroleum resources downstream sector that 39 permits had been issued to oil marketing and trading companies for the importation of petrol for the fourth quarter of 2012 to cope with fuel scarcity and the distortion of the official price of products. The minister attributed the constant shortage across the country to the vandalization of pipelines by illegal bunkerers. The government was collaborating with security agents to check pipeline vandalism.

In the fourth quarter, the same level of imports as in the third quarter will be maintained. These are estimated to be 3.12 million tons (or about 4.2 billion liters). In the first quarter of the year, permits were issued for the importation of 3.755 million tons, and in the second quarter, this was reduced to 3.575 million tons. These imports of fuel were made to the country, which is the largest crude oil producer on the African continent. Hence, there has been pressure on the TAM program to move forward.

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