There are strong indications that the Federal Government may soon be entering into an agreement with an international hydro carbon and petroleum processing company; Honeywell International Incorporated, over the running and management of the Kaduna refinery in order to revamp and make it work at full capacity.
Honeywell International Incorporated, a USA- based company was said to have first come to Nigeria last year with a proposal to the federal government to carry out a turn- around maintenance (TAM) at the Kaduna Refinery and Petrochemical Company (KRPC) under the management of Anyiam Osigwe Group a consulting and management company.
Reliable sources however confirmed to Shipping Position Weekly that the Honeywell group last week arrived in the country and is set to resume talks with the federal government over the possible take over of the refinery. It will also be negotiating with the Minister for petroleum, officials of the Nigerian National Petroleum Corporation (NNPC), management of the KRPC and other top government functionaries.
Our correspondent also gathered that the KRPC is to be used by Honeywell International Company as a pilot project to begin a turn around maintenance of the Kaduna refinery, remodel it and make it work at 150 per cent capacity which is about 50 per cent above its installed capacity.
The proposal also has it that the Federal government in this joint venture will not necessarily spend any money on the project as all expenses would be borne by Honeywell which will later recoup its investment in the refinery from the 50 per cent increase in the production.
A top official (names withheld) in the Department of Petroleum Resources (DPR); a subsidiary of the NNPC confirmed to our correspondent via the phone that “the proposal was made about a year ago, but it was being stalled because the company has not asked for necessary papers from the NNPC”
According to our source “this is a good development considering the fact that the country’s three refineries namely: Warri, Port Harcourt and Kaduna refineries are currently working at a 50 per cent capacity, if the company can make the Kaduna refinery to work at optimum, it will be a welcome development”
“I also believe that NNPC is also equal to the task so they should be given the powers to manage some of these refineries and this will further aid the realization of the local content law and assist in building indigenous capacity, I believe together we can change the sector for the advantage of the populace” he said.
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