November 29, 2024

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From left: Jungheung Group Vice Chairman Jung Won-ju, Daewoo E&C CEO Baek Jung-wan, NNPC Group CEO Mele Kyari, and the Nigerian Minister of Petroleum Resources Timipre Sylva poses for a photo after signing LOI on Thursday at Lotte Hotel Seoul. (Daewoo E&C)

South Korean builder Daewoo E&C and its Nigerian counterpart signed a letter of intent to rehabilitate an oil refinery in the African country with Nigerian President Muhammadu Buhari in attendance.

The letter of intent signed by the Daewoo E&C CEO Baek Jung-wan and the Group CEO of Nigerian National Petroleum Corporation Mele Kyari is aimed at reoperating the Kaduna refinery located at Chikun, Kaduna, Nigeria, capable of producing up to 110,000 barrels of petroleum per day.

The plant had stopped operating multiple times over the past few years due to worn-out facilities.

In response, Daewoo E&C plans to carry out the rehabilitation project of the Kaduna refinery by inking the final deal with the NNPC by the first quarter of next year, according to officials.

“I will gladly support projects that Daewoo E&C is already carrying out in Nigeria and I also look forward to new ones to come. We have already opened up more windows for Daewoo E&C,” said President Buhari who is on an official trip to South Korea.

Daewoo E&C had previously won an oil refinery plant rehabilitation project worth approximately $492.3 million from Warri Refinery and Petrochemical Company, a subsidiary of NNPC, on June 24.

“Daewoo E&C has been practicing people-to-people diplomacy in Nigeria for the past 40 years of experience in the country carrying out more than 70 projects there," said an official from Daewoo E&C. "By submitting the letter of intent signed today, we hope to broaden our business portfolio to not only repairing aging oil refineries but also make new ones, and also increase the possibility of operating oil refineries on consignment in the future."

Jungheung Group is the largest shareholder of Daewoo E&C, and is also the parent company of The Korea Herald.

By Hong Yoo (yoohong@heraldcorp.com)