The Nigerian National Petroleum Company Limited has once more not succeeded in initiating fuel production at the Port Harcourt refinery located in Rivers State.
This occurs notwithstanding the refinery’s inability to initiate operations following approximately six delays as of August 2024.
It was noted that the commitments made to Nigerians by the Federal Ministry of Petroleum Resources and NNPC regarding the refinery have persistently encountered significant obstacles.
Following the unsuccessful commitment made in early August, Umar Ajiya, the Chief Financial Officer of the NNPC, announced that the Port Harcourt refinery is set to begin operations in September 2024.
In an address to journalists in August, Ajiya indicated that petroleum products would undergo testing prior to their availability in the domestic market in September.
With the conclusion of September yesterday, the NNPC has yet to provide an update regarding the refinery.
Last week, our correspondent reached out to the NNPC seeking an update regarding the refinery; however, no response was forthcoming.
Olufemi Soneye, the Chief Corporate Communications Officer of the oil firm, has not responded to inquiries directed to him on September 22 and 30, 2024.
Nonetheless, Maire Tecnimont SpA, the contractor responsible for the rehabilitation of the Port Harcourt refinery, indicated that it would furnish details regarding the project’s completion by or before October 2.
The contractor communicated this via a legal firm, Olajide Oyewole LLP, in reply to a correspondence from Senior Advocate of Nigeria, Femi Falana, who had sought clarification regarding the timeline for the rehabilitation of the refinery.
In response to Falana’s request, the law firm indicated that its client has acknowledged receipt of the letters dated September 17 and 24 concerning the contract with the NNPC and is currently deliberating on the inquiries presented.
“Our client is currently reviewing your correspondence and plans to respond to you on or before 2 October 2024,” the law firm stated.
Since December 2023, NNPC, responsible for overseeing all government refineries, has provided Nigerians with various timelines, assuring them that the refinery will soon commence the sale of refined products.
In July, the Group Chief Executive Officer of the NNPC, Mele Kyari, asserted with clarity that the refinery would commence operations in early August.
The same Kyari asserted in 2019 that the NNPC would complete the delivery of all four refineries in the country prior to the conclusion of former President Muhammadu Buhari’s administration.
During his appearance before the Senate in July, Kyari asserted, “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products.”
“Regarding the NNPC refineries, we have engaged with several of your committees, and it is clear that the Kaduna refinery cannot commence operations before December. Both the Warri and Kaduna refineries will reach that timeline, whereas the Port Harcourt facility is set to begin production in early August of this year.”
Nevertheless, the commitment remained unfulfilled in August, marking the sixth delay.
Despite the NNPC’s assertion of being on track, the refinery has not yet initiated operations.
It was noted that the refinery, with a capacity of 210,000 barrels per day, was reported to have achieved what the NNPC referred to as mechanical completion of its rehabilitation work in December. The announcement indicated that the facility would commence the refinement of 60,000 barrels of crude oil each day following the Christmas break of the previous year.
In late January, Kyari indicated that the refinery was undergoing testing and would be operational by the month’s conclusion.
In the second month of the year, the Shell Petroleum Development Company of Nigeria Limited finalized the delivery of 475,000 barrels of crude oil to the facility, heightening the anticipations of marketers regarding the imminent commencement of production.
This occurred a few weeks subsequent to the NNPC’s announcement in January regarding its intention to engage reputable and credible operations and maintenance firms for the management of the refinery.
In mid-March, Kyari indicated that the Port Harcourt refinery was set to begin operations in two weeks, specifically in April.
“We are dedicating ourselves to this nation with respect and integrity. Kyari asserted, “We will ensure that the commitments we have made regarding the rehabilitation of these refineries will be fulfilled,” following his appearance before the Senate Ad-hoc Committee examining the various turnaround maintenance projects of the nation’s refineries.
With the passage of the April deadline, independent petroleum marketers informed newsmen that production at the facility is anticipated to commence by the conclusion of July.
In response to this matter, the Chief Corporate Communications Officer of NNPC, Soneye, articulated that the sole barrier hindering the operational initiation of the refinery is the regulatory approvals from international entities.
A number of Nigerians have articulated their discontent regarding the prolonged inactivity of the nation’s refineries. The nation has consequently relied on imported fuel as a result of insufficient refining capacity, expending as much as N2tn each month.
The President of the Dangote Group, Aliko Dangote, stated that the Federal Government has expended $4 billion in efforts to rejuvenate the nation’s refineries.
The refinery, located in Nigeria’s oil-abundant Niger Delta region, has been operational since 1965, though it subsequently fell into a state of disuse for several years.
In March 2021, the Nigerian government secured a $1.5 billion loan aimed at the renovation and modernization of the refinery. This decision faced criticism from former Vice President Atiku Abubakar, who proposed the divestment of all government-owned refineries.
In response to the proposal to transfer management of the refinery to private entities, Atiku criticized former President Muhammadu Buhari and the current President Bola Tinubu for disregarding his counsel that government-owned refineries should be privatized.
In the interim, there exists a palpable sense of optimism among Nigerians regarding the impending commencement of operations at the refinery, which is anticipated to curtail fuel importation and potentially lead to a significant reduction in petrol pump prices.
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