Port Harcourt Refinery Fails To Meet Seventh Production Rollout Deadline

Port Harcourt Refinery Fails To Meet Seventh Production Rollout Deadline

The Nigerian National Petroleum Company Limited (NNPC) has once again failed to initiate fuel production at the Port Harcourt refinery in Rivers State, despite several postponements leading up to August 2024. The PUNCH reports that the Federal Ministry of Petroleum Resources and NNPC have repeatedly made promises regarding the refinery’s operations, which have not materialized……CONTINUE READING 

After a promise in early August, NNPC Chief Financial Officer Umar Ajiya stated that operations at the Port Harcourt refinery would begin in September 2024. However, as September came to a close, the NNPC did not provide any updates on the refinery’s status. Attempts to reach the company for clarification last week went unanswered, as Olufemi Soneye, the Chief Corporate Communications Officer, did not respond to inquiries made on September 22 and 30.

Meanwhile, Maire Tecnimont SpA, the contractor responsible for the refinery’s rehabilitation, indicated through their law firm, Olajide Oyewole LLP, that they would provide an update on the project’s completion by or before October 2. This response came after Senior Advocate of Nigeria Femi Falana inquired about the rehabilitation timeline.

Since December 2023, the NNPC, which oversees all government refineries, has consistently assured Nigerians that the Port Harcourt refinery would soon commence the sale of refined products. In July, Mele Kyari, the Group Chief Executive Officer of NNPC, confidently declared that operations would start in early August. He had previously promised in 2019 that all four of the country’s refineries would be operational by the end of former President Muhammadu Buhari’s administration.

During a Senate appearance in July, Kyari stated, “I can confirm to you, Mr. Chairman, that by the end of the year, this country will be a net exporter of petroleum products.” He added that the Port Harcourt refinery would begin production in early August, although this promise went unfulfilled—marking the sixth postponement.

The refinery, with a capacity of 210,000 barrels per day, was reported to have reached mechanical completion of its rehabilitation in December, with plans to refine 60,000 barrels of crude oil daily after the Christmas break. In January, Kyari indicated the facility was being tested and would be operational by the month’s end. Shortly after, Shell Petroleum Development Company supplied 475,000 barrels of crude oil to the refinery, raising hopes of an imminent start to production.

By mid-March, Kyari stated the refinery would begin operations in two weeks. However, as the April deadline passed, independent petroleum marketers expressed expectations of production beginning by the end of July. Soneye attributed the delays to pending regulatory approvals from international bodies.

Many Nigerians have voiced their frustration over the long-standing inactivity of the country’s refineries, leading to reliance on imported fuel and monthly expenditures of up to N2 trillion. Aliko Dangote, President of the Dangote Group, noted that the Federal Government has spent $4 billion attempting to revive the nation’s refineries. Established in 1965 in Nigeria’s oil-rich Niger Delta, the Port Harcourt refinery has experienced prolonged periods of inactivity.

In March 2021, the Nigerian government secured a $1.5 billion loan for its renovation and modernization, a decision criticized by former Vice President Atiku Abubakar, who advocated for privatizing government-owned refineries. Atiku has previously urged both former President Buhari and current President Bola Tinubu to sell the refineries to private investors.

As hopes remain high for the refinery’s operational launch, Nigerians are eager to see a reduction in fuel importation and lower petrol prices.

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