The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Mele Kyari, has said that the country does not have the financial capability to build new refineries.
Speaking to journalist on Monday, on the controversy generated by the proposed rehabilitation of the Port Harcourt refinery, he explained that a new refinery would cost about $10billion, while the planned renovation would gulp $1.5billion.
“A new refinery will take four years to commence production. It is around $7billion and $12billion dollars to construct a refinery of this nature,” he said.
The NNPC chief mentioned “an additional 25 per cent cost for construction battle-limits” to the 7-12 billion dollars.
“You cannot build a refinery at any cost below these amounts. The option you have is to scrap and build a new one; we all know that we don’t have that resource,” he stated.
Kyari added that the last turnaround maintenance of the Port Harcourt refinery was done two decades ago.
He linked the current high cost of rehabilitation to poor maintenance of the plant over the years.