Nigeria owns four refineries with two located in Port Harcourt and one each in Warri and Kaduna. But for many years, the refineries have been moribund despite Turn-Around-Maintenance (TAM) efforts.
The Nigerian government on Thursday announced the mechanical completion and the flare start-off of the country’s biggest crude refinery in Port Harcourt.
Heineken Lokpobiri, minister of state for Petroleum Resources (Oil), made the announcement during a media tour of the Port Harcourt refinery on Thursday.
“Just to announce to Nigerians the fulfilment of our pledge to bring on stream phase one of the Port Harcourt refinery by the end of 2023 and the subsequent streaming of phase two in 2024. We happily announced the mechanical completion and the flare start-off on the 20th of December 2023,” Mr Lokpobiri said on Thursday.
The Port Harcourt Refineries comprise of two units, with the old plant having a refining capacity of 60,000 barrels per day (bpd) and the new plant 150,000 bpd, both summing up to 210,000 bpd.
The refinery shut down in March 2019 for the first phase of repair works after the government secured the service of Italy’s Maire Tecnimont to handle the scoping of the refinery complex, with oil major Eni appointed technical adviser.
Speaking on Thursday, the minister explained that production of petroleum products at the refinery will commence after the Christmas break.
Mr Lokpobiri said “This heralds the commencement of production of petroleum products after the Christmas break. We want to thank Nigerians for their patience and trust in the NNPC to deliver on her promise and mandate of the rehabilitation of our refineries.
“This is also another landmark of the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration. Congratulations to NNPC and congratulations to Nigerians.”
Also speaking on Thursday, the Board Chairman of NNPC Ltd, Pius Akinyelure, expressed satisfaction over the new development.
Mr Akinyelure said it was a promise made to President Bola Tinubu that the refinery would begin operation in 2023.
He recalled that the refinery had undergone several phases of rehabilitation, noting that its commencement of operations would keep fuel costs stable.
Background
Nigeria owns four refineries with two located in Port Harcourt and one each in Warri and Kaduna. But for many years, the refineries have been moribund despite Turn-Around-Maintenance (TAM) efforts.
This has resulted in the importation of petroleum products for domestic use for many years to cover the gap in the refinery’s output, costing the nation dear in terms of lost revenue.
In 2015, former President Muhammadu Buhari pledged to revive the country’s minimally performing refineries to optimum capacity and boost foreign reserves by ending the importation of refined fuel.
In November 2018, the Buhari administration fixed December 2019 as the deadline for three refineries to attain full production capacity to end petroleum importation in the country. Later in the month, the deadline was shifted to 2020.
Even though the 2020 deadline was not realised, the government spent N10.23 billion in June 2020 on three refineries that processed zero crude.
In 2021, NNPCL said repairs had started at Port Harcourt Refining Company (PHRC) after FEC approved $1.5 billion for the project.
Last September, the then Minister of State for Petroleum Resources, Timipre Sylva, said the country’s biggest crude refinery in Port Harcourt would restart operation in December after it had completed a revamp that began over a year ago. But PREMIUM TIMES analysis in October last year showed that the timelines were unmet.
Again, in January 2023, Mr Sylva assured that part of the refinery would be completed by the year’s first quarter, but the government has again failed to meet its target.
Mr Lokpobiri had in August assured that the Port Harcourt refinery will become functional by December while Warri and Kaduna will be ready by the end of next year.
On the tour were the Minister of State Petroleum Resources (Gas) Ekperikpe Ekpo, Nigerian National Petroleum Company Limited (NNPC Ltd) Board Chairman, Pius Akinyelure, NNPC Ltd. Group Chief Executive Officer, Mele Kyari and other dignitaries.
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