HomeUncategorizedPort Harcourt Refinery Misses Seventh Production Rollout Deadline

Port Harcourt Refinery Misses Seventh Production Rollout Deadline

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The Nigerian National Petroleum Company Limited (NNPC) has once again failed to commence fuel production at the Port Harcourt refinery in Rivers State, marking the seventh missed deadline since August 2024. This ongoing delay has raised concerns as promises from the Federal Ministry of Petroleum Resources and the NNPC continue to fall short.

In early August, NNPC’s Chief Financial Officer, Umar Ajiya, assured that operations would begin in September, with petroleum products ready for testing by that time. However, as September concluded without any updates from the NNPC, frustration among citizens has grown.

Attempts to obtain information from the NNPC regarding the refinery’s status have gone unanswered. Olufemi Soneye, the Chief Corporate Communications Officer, has not responded to inquiries made on September 22 and September 30.

Maire Tecnimont SpA, the contractor responsible for rehabilitating the refinery, indicated through their legal representative that they would provide updates on the project by or before October 2. The firm has acknowledged the inquiry made by Senior Advocate of Nigeria, Femi Falana, regarding the rehabilitation timeline.

Since December 2023, NNPC has issued various timelines to Nigerians, promising that the refinery would soon begin producing refined products. In July, Group CEO Mele Kyari reiterated that the refinery would become operational in early August, despite previous assurances made in 2019 that all four of Nigeria’s refineries would be operational by the end of former President Muhammadu Buhari’s administration.

Kyari had told the Senate in July, “I can confirm that by the end of the year, this country will be a net exporter of petroleum products.” Yet, these commitments have not materialized, with the refinery still not operational.

The Port Harcourt refinery, designed to process 210,000 barrels of crude oil per day, was reported to have reached “mechanical completion” of its rehabilitation in December. Initial promises suggested it would begin refining 60,000 barrels of oil daily shortly after Christmas 2023, but subsequent delays have continued.

In March, Kyari stated operations would commence in April, only for that deadline to pass without action. Soneye, the NNPC spokesperson, later cited regulatory approvals from international bodies as the only remaining hurdle to the refinery’s operation.

The continued dysfunction of Nigeria’s refineries has left the country reliant on imported fuel, costing up to N2 trillion monthly. Aliko Dangote, President of the Dangote Group, noted that the Federal Government has spent $4 billion attempting to revive the refineries.

The Port Harcourt refinery has been operational since 1965 but has faced years of inactivity. The Nigerian government secured a $1.5 billion loan for its renovation in March 2021, a move criticized by former Vice President Atiku Abubakar, who advocated for the privatization of government refineries.

Nigerians remain hopeful that the refinery will finally begin operations, potentially curbing fuel imports and reducing petrol prices at the pump.

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