The Port Harcourt Refining Company, operated by the Nigerian National Petroleum Company Limited (NNPC) in Rivers State, has once again failed to commence operations, marking the sixth delay in its scheduled restart, as reported by “The PUNCH”.
Repeated assurances from the Federal Ministry of Petroleum Resources and NNPC about the refinery’s operational status have continued to fall short, disappointing Nigerians.
Since December 2023, NNPC has provided various dates, promising that the refinery would soon begin the sale of refined products.
In July, NNPC’s Group Chief Executive Officer, Mele Kyari, confidently stated that the refinery would be operational by early August.
This followed his earlier promise in 2019 that all government-owned refineries would be fully functional before the end of former President Muhammadu Buhari’s administration.
Appearing before the Senate in July, Kyari declared, “I can confirm to you, Mr. Chairman, that by the end of the year, this country will be a net exporter of petroleum products.
Specifically, for NNPC refineries, the Port Harcourt refinery will commence production early August this year.”
However, as mid-August approaches, the refinery remains idle, sparking concerns that this could be yet another unfulfilled promise from the NNPC.
Responding to inquiries on Tuesday, NNPC spokesperson Olufemi Soneye briefly commented, “We are on course,” without providing further details on whether the refinery would begin operations this month.
The Port Harcourt refinery, with a capacity of 210,000 barrels per day, was reported to have completed its mechanical rehabilitation in December.
NNPC had indicated that the facility would start refining 60,000 barrels of crude oil daily after the Christmas break.
In January, Kyari mentioned that the refinery was undergoing testing and would be ready by the end of the month.
In February, the Shell Petroleum Development Company of Nigeria Limited delivered 475,000 barrels of crude oil to the Port Harcourt refinery, raising expectations among marketers that production was imminent.
However, by mid-March, Kyari announced that the refinery would begin operations within two weeks, in April—a deadline that also passed without results.
NNPC’s Chief Corporate Communications Officer, Soneye, later explained that regulatory approvals from international bodies were the only remaining obstacle.
“We have said that the mechanical completion has been done and everything else is ready.
We are only waiting for regulatory approvals, some of which come from outside Nigeria. Once we receive these approvals, operations will commence,” he stated in May.
The prolonged delays have led to frustration among Nigerians, as the nation continues to rely on imported fuel, spending up to N2 trillion monthly.
Former President Olusegun Obasanjo, while addressing members of the House of Representatives in Abeokuta, criticized past and current efforts to revitalize the refineries, citing corruption and poor management as key issues.
Obasanjo recounted how Shell refused to manage the refineries during his presidency, a decision he believes contributed to the current situation.
He criticized the decision to reject a $750 million offer for the refineries, a move he described as “unwise,” predicting that the refineries would struggle to find buyers even as scrap.
The Port Harcourt refinery, located in the Niger Delta region, has been operational since 1965 but has remained largely dormant in recent years.
In March 2021, the Nigerian government secured a $1.5 billion loan for its renovation, a decision that faced criticism, including from former Vice President Atiku Abubakar, who has consistently advocated for the sale of all government-owned refineries.
NNPC recently announced an agreement with African Refinery Port Harcourt Limited for the subscription of a 15% equity stake in the Port Harcourt Refining Company, which is expected to increase the refinery’s capacity from 210,000 barrels per day to 310,000 barrels per day.
Meanwhile, the Senate has expressed concerns over the $1.5 billion allocated for the refinery’s renovation in 2021.
Senate Leader Opeyemi Bamidele criticized the handling of government-owned refineries, lamenting that despite significant investments in maintenance, these facilities remain non-functional.
Nigerians remain hopeful that once completed, the Port Harcourt refinery will reduce the country’s dependence on fuel imports and lead to a drop in petrol prices.
