The Nigerian National Petroleum Company’s management in its quest to position itself as a profitable business entity has undertaken a balance-sheet restructuring exercise, as well as some financial arrangements for the restoration and turnaround maintenance of refineries, pipelines, and depots with the expertise of Cainergy International. Nigerian refining plants and pipelines have remained inactive for some years. There are indications that the refining units are not producing or are operating below their installed capacity. The existence of these elements indicates that the refinery plants may be compromised.
Cainergy to provide consultancy services for Warri Refinery and Petrochemical Company Limited in determining impairment allowance, which shall include the provision of technical and engineering valuation of all WRPC’s assets; determination of the value in use (financial/accounting cash flow consideration); validation of the carrying amount of the assets; determination of value in use; determination of impairment loss; and carrying out of any other assignable tasks.
Cainergy is conducting a two-pronged evaluation of WRPC, including a technical integrity evaluation and a fair value judgement based on the observed technical state of the composite assets, systems, equipment, and components, to determine the actual state and fair value of the facilities and their component parts.
