Exclusive Contract for Emergency Repair Work at Kaduna Refinery
"Proving to be the Strongest in Nigeria's Construction Market"
[Asia Economy Reporter Lim On-yu] Daewoo Engineering & Construction has secured a contract worth 720 billion KRW for refinery facility maintenance work in Nigeria. Daewoo E&C evaluated, "By succeeding in consecutive orders in Nigeria, we were able to reaffirm Daewoo E&C's technological competitiveness once again."
Daewoo E&C announced on the 3rd that it signed a contract on the 2nd for the "Kaduna Refinery Facility Emergency Maintenance Work" ordered by Kaduna Refining and Petrochemical Company (KRPC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC). This contract is a private contract work with the same content as the emergency maintenance work for the Warri Refinery Facility contracted with Warri Refining and Petrochemical Company (WRPC), a subsidiary of NNPC, in June last year.
The total construction amount is 589.18 million USD (approximately 725.5 billion KRW), and the construction period is 21 months from the start date. Among the total three packages, the deadlines for Package 1 and 2 have been fixed, but Package 3 construction will proceed under consultation and approval with the client in the future.
This project involves emergency maintenance of the existing Kaduna refinery facility located in the Kaduna region, 160 km north of Abuja, the capital of Nigeria. Daewoo E&C won this project through a private contract and will independently carry out the commissioning stage for petroleum product production.
The Kaduna refinery facility, completed in 1983 by Japan's Chiyoda, is a refinery with a capacity of 110,000 barrels per day. The NNPC side is known to expect the maintenance and commissioning of the aging refinery facility to be completed as soon as possible. Although Nigeria is the largest oil-producing country in Africa, it relies mostly on imports of gasoline and other fuels due to low operating rates caused by aging refinery facilities. Recently, the Nigerian government’s fiscal burden has increased due to soaring petroleum product import prices and fuel subsidy payments.
A Daewoo E&C official said, "Daewoo E&C was able to secure this project through a private contract because it has a track record of constructing refinery facilities in Kuwait, Oman, Saudi Arabia, and possesses experience, human resources, and physical assets to successfully carry out multiple projects in Nigeria, its main market."
Based on friendly relations with the Nigerian corporation, clients, and local communities, Daewoo E&C can efficiently perform the work by utilizing personnel, equipment, and materials with experience in constructing the Indorama Petrochemical Complex, where construction continued until recently. This also reduces construction risks, ensuring high profitability.
A Daewoo E&C official stated, "Following the emergency maintenance work for the Warri refinery facility (492.32 million USD) in June last year, this order has solidified our position in the aging refinery maintenance sector. We will also actively pursue new construction orders in Nigeria, such as the ongoing negotiations for the third phase of the Indorama fertilizer plant."
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