- Nigeria and South Korea have signed up together to strike a major oil deal.
- The deal obligates the Chinese company Daewoo to repair the Kaduna refinery.
- The Kaduna refinery has the capacity to produce 110,000 barrels per day.
The federal government of Nigeria has just struck a deal with South Korea.
A spokesperson for the Nigerian government disclosed on Thursday that the Nigerian National Petroleum Company Limited (NNPC) just finalized a deal with Daewoo Group of South Korea to rehabilitate the Kaduna Refinery.
The spokesperson noted that the president of Nigeria, President Muhammadu Buhari, approved the signing which took place on the sidelines of the 2022 World Bio Summit on Thursday in Seoul, South Korea.
Nigeria currently imports its finished fuel products, despite having a number of refineries. The Kaduna refinery has the capacity to produce 110,000 barrels per day and stands as one of the four dormant refineries in the Nigerian government’s possession.
During the signing, the president of Nigeria gave his remark, noting that he understands how admirable the competence of the partner company is.
“Daewoo Group has massive investments in the automobile, maritime, and other sectors of our economy.” He said
“I am also aware that Daewoo is currently engaged in the execution of the NLNG train seven project and also constructing sea-going LPG vessels for NNPC and her partners.” He concluded.
Currently, the biggest state refinery is in Port Harcourt, and as the Kaduna refinery would soon be, it is, at this moment undergoing repairs by Tecnimont of Italy.
The government says it expects the plant to start production by December.
The Federal Executive Council in August last year approved the award of the contract for the rehabilitation of Warri and Kaduna Refineries at the combined total sum of $1.5 billion.
