Liberian firm lets contract for refinery feasibility study

ECOWAS Refinery Liberia Ltd. (ERLL) has let a contract to KBR Inc. to execute a bankable feasibility study for a proposed 100,000-b/d refinery to be built in Buchanan, Liberia.

To be performed over 5 months, KBR’s scope of work includes development of an optimal refinery configuration, a financial model inclusive of capital and operational cost estimates, as well as an environmental, social, and health impact assessment (ESHIA) study, the service provider said.

KBR will execute the project with support from China National Petroleum Corp. subsidiary China Huanqiu Contracting & Engineering Corp., which will advise in tailoring the BFS product for potential future-phase Chinese investment in the refinery.

While KBR did not disclose a value of the contract, the company said the project value will be booked into earnings of its technology and consulting business segment for this year’s second quarter.

ERLL previously was awarded a contract by state-owned Liberia Petroleum Refinery Co. (LPRC) to execute a feasibility study for construction of its own refinery in the country, according to 2013 local media reports out of the region.

KBR did not respond to a request to clarify whether ERLL has awarded this most recent contract on behalf of LPRC or as the proposed refinery’s future owner.

ERLL could not be reached directly for comment.

In its 2011-16 strategic plan issued in October 2012, LPRC said it intended to conduct feasibility studies for construction of a 50,000-b/d refinery in Liberia, which currently without its own operable refinery, relies exclusively on fuel imports from surrounding regions.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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