South Korea’s Daewoo Engineering and Construction Co. (Daewoo E&C) has won a $492 million maintenance service order for an oil-refining facility in Nigeria whose operations have been suspended three years ago.

Daewoo E&C announced Monday that its Nigerian unit received a “letter of award” on Warri Refinery Quick Fix PJ contract from Warri Refining and Petrochemical Company (WRPC) under Nigeria National Petroleum Corporation (NNPC) last Friday. The $492.3 million order has been placed through a non-competitive bid and will be carried out exclusively by Daewoo E&C between July and December next year.

The company’s CEO Baek Jung-wan flew to Nigeria to sign the letter of award (LOA) at the office of Nigerian Gas Marketing Company (NGMC), a subsidiary of NNPC, in Nigeria’s capital Abuja.

Unlike other LOAs, the contract stated details on the maintenance project including construction fee, period, and operation range, the company said.

Of total three maintenance work, the construction period has been confirmed for the first two packages while the final package will be carried out upon agreement and approval by WRPC.

The project involves Daewoo E&C promoting emergency repair work on aged Warri refining facility located 8.5 kilometers north of southern Nigernia’s Warri Port. Operations of the facility built in 1978 have been suspended three years ago. NNPC has asked Daewoo E&C repair work for swift facility re-operations.

“We were able to win the order based on experience of successfully carrying out multiple projects in Nigeria,” said an unnamed Daewoo E&C official. “We will expand participation in projects in Nigeria that involve maintenance work for aged refining facilities and new facility construction.”

By Lee Eun-joo

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