Despite previous assurances from authorities, the Port Harcourt Refining Company Limited (PHRC) has not yet begun operations.
The refinery, which has been inactive for many years, was expected to alleviate the country’s energy crisis and end the need for importation once it and other refineries in Warri and Kaduna became operational.
The expectation is that the government-owned refineries, supplemented by the Dangote refinery, will pump oil for domestic use, increasing forex inflow which has been severely impacted by importation.
On March 28, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), informed the Senate that the Port Harcourt refinery would start delivering refined petroleum products within two weeks. He also assured that the refineries’ rehabilitation would be completed as planned.
Kyari revealed that the Warri refinery was nearing completion, and the Kaduna refinery would be ready for production by December this year. He confirmed that the Port Harcourt refinery’s rehabilitation had been completed and had passed its “completion mechanical procedure.”
On Tuesday, Olufemi Soneye, the NNPL Chief Corporate Communications Officer, stated that regulatory and compliance tests were the only obstacles preventing the Port Harcourt refinery from starting full operations.
He explained, “The Port Harcourt refinery has received crude oil, and it has been stored in the facility. All crude lines are currently active. Regulatory and compliance tests are ongoing, and once they are completed, the refinery will begin operations. This adherence to best practices is recognized globally.”
On February 12, the Shell Petroleum Development Company of Nigeria Limited (SPDC) announced that it had completed the supply of over 475,000 barrels of crude oil to the Port Harcourt refinery from the Bonny Oil and Gas Terminal, a joint venture asset operated by SPDC.
Dr Osagie Okunbor, Country Chair of Shell Companies in Nigeria and Managing Director of SPDC, said, “With this supply restart, the refining capacity of in-country is expected to revive and make petroleum products readily available while reducing Nigeria’s dependence on imported refined products.”
Odita Nnajiofor, the terminal’s Installation Manager, commented on the resumed crude supply, stating that the successful restart of the crude supply is a significant step in the country’s renewed efforts to utilize key infrastructure to ensure the steady supply of products from the refining company to the Nigerian market.
Nnajiofor explained, “Before implementing the supplies of the product to the refining company, the project teams first ensured the integrity of the supply pipelines and the terminal’s export pumps which had been shut down for an extended period.” These actions resulted in the successful and safe completion of the refinery supply with no harm to people and environment.
However, missed deadlines have characterized previous restart dates. The Port Harcourt refinery was 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.
In 2021, NNPC Limited announced that repairs had begun after the Federal Executive Council approved $1.5 billion for the project. The government stated that the funding for the repairs would come from various sources including NNPC, Internally Generated Revenue (IGR), budgetary provisions, and Afreximbank.
