After Years of Neglect, Port Harcourt Refinery Begins Operations at 60,000 bpd

After a long delay involving at least seven missed deadlines, the Nigerian National Petroleum Company Limited (NNPC) on Tuesday said it had finally activated the 60,000 barrels per day (bpd) phase one of the Port Harcourt oil refinery, located in Rivers State.

The rehabilitation process for the total 210,000 bpd refinery began in 2021 after the federal government secured a $1.5 billion contract to fix the facility, which had been left decrepit for years.

NNPC had initially failed to make public the litres of petrol, diesel, jet fuel, and naphtha the refinery will roll out, in negation of global best practice. However, citing public criticism, the national oil company later said it was refining 1.4 million litresof petrol per day, an extremely low figure by all estimations.

The two plants located in Eleme in Rivers State, have two operational units established in 1965 and 1989, with a combined installed capacity of 210,000 bpd, the older being a 60, 000 bpd facility, and the relatively newer plant having a 150,000 bpd capacity.

In April 2021, the federal government said the rehabilitation will be done in three phases of 18, 24 and 44 months, with funding expected to come from NNPC’s Internally Generated Revenue (IGR), budgetary provisions, and African Export-Import Bank (Afreximbank). The timelines were missed several times.

But just after the national oil company said on Tuesday that it had officially begun production from the first phase of the refinery, President Bola Tinubu directed the firm to ensure prompt reactivation of the second phase of the Port Harcourt refinery, as well as the Warri and Kaduna refineries.

Reacting to the successful reactivation of the main Port Harcourt refinery, Tinubu, in a statement issued by his Special Adviser on Information and Strategy, BayoOnanuga, stressed that the efforts will significantly enhance domestic production capacity. He explained that this will boost in-country refining, alongside the contributions of privately-owned refineries, and make the country a major energy hub, with the gas sector also enjoying “unprecedented” attention by the administration.

Tinubu underscored his administration’s determination to repair the country’s refineries, aiming to eradicate the “disheartening” perception of Nigeria as a major crude oil producer that lacked the ability to refine its own resources for domestic consumption.

He extended his congratulations to NNPC on the successful revitalisation of the Port Harcourt refinery, marking the official commencement of petroleum product loading yesterday.

The president acknowledged the pivotal role of former President MuhammaduBuhari in initiating the comprehensive rehabilitation of all the national refineries and expressed gratitude to Afreximbank for financing the project.

Highlighting the value of patience, integrity, and accountability in the rebuilding of the nation’s infrastructure, Tinubu called on individuals, institutions, and citizens entrusted with responsibilities to maintain focus and uphold trust in their service to the nation.

In alignment with the “Renewed Hope Agenda” focused on shared economic prosperity for all, the president reaffirmed his administration’s commitment to achieving energy sufficiency, enhancing energy security, and boosting export capacity for Nigeria.

An ecstatic NNPC said the reactivation was in fulfilment of its pledge to re-stream the Port Harcourt Refining Company (PHRC), signalling the commencement of crude oil processing from the plant and delivery of petroleum products into the market.

It disclosed that trucks had commenced loading petroleum products, which included Premium Motor Spirit (PMS) or petrol, Automotive Gas Oil (AGO), otherwise called diesel, as well as Household Kerosene (HHK) or kerosene, while other product slates will be dispatched as well.

Speaking during a brief ceremony to mark the commencement of products loading at the refinery, Group Chief Executive Officer, NNPC, Mr. Mele Kyari, described the start of the load-out activities as a monumental achievement for Nigeria, which signified a new era of energy independence and economic growth for the country.

Kyari particularly thanked Tinubu for his support and understanding towards the rehabilitation project, as well as his persistence to ensure energy security for the country.

Kyari also expressed appreciation to the NNPC Board of Directors and the entire staff for their support and commitment, which crystallised in the streaming of the refinery.

He commended the contractors for doing a great job in ensuring that the refinery was delivered, despite all challenges.

Kyari stated, “We are going to see loading today (yesterday). I just want to add that without leadership support, you cannot achieve results like this. And we are convinced beyond all doubt that without the support, perseverance, and patience of Mr. President, we would not have achieved this feat.

“And all of us must congratulate him because it is his massive pressure that made us to come to this level. And we are very happy. And I congratulate my colleagues in the refinery and outside the refinery, our contractors, and even our regulators for helping us and supporting us coming to this level.

“It is possible. This country, this refinery has shown that with persistence, with the right focus, with the right leadership support, which we have today, that we know that anything is possible. And this country is going great under the leadership of President Tinubu.”

In his remarks, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, congratulated NNPC for the milestone. Ahmed assured of his agency’s continued support towards the completion of rehabilitation work on the other refineries.

He said, “I just want to confirm that all the regulatory support that were required by the refinery was granted and offered by the NMDPRA, and my colleagues have been working very closely with the contractor, as well as the management of PHRC.

“What is important, like the contractor said, is the upgrade to new technology.

“So this is an old plant that has come back with the current technology. And we are particularly supportive and worked closely with them to ensure that all the regulatory requirements were met. One thing that we have noticed also is the flare.

“If you can all see; the flare is very clean. There is no smoke, which shows that the plant is working very well and in compliance with the environmental requirements.”

Project Director, Maire Tecnimont, Caccaviello Luca, in his intervention, thanked the entire team for the success of the project, stressing that the 60,000 bpd facility is now operating at full capacity.

Luca said, “We did a great job. We succeeded to have the facility in full production, and that is thanks to everybody. The next step soon will be to work on the other part of the area of the facilities, with the same passion, with the same effort.

“And soon, despite all challenges that we will have in front of us, we will have a good result on the rest of the plant.”

The refinery rehabilitation project was an Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) project aimed at restoring the refinery to full functionality and renewal. It has so far achieved over 16 million man-hours with zero Loss Time Injury (LTI), it was gathered.

Separately, NNPC said it was aware of “unfounded” claims by certain individuals suggesting that the refinery was not refining products. It explained that for clarity, the old Port Harcourt refinery was currently operating at 70 per cent of its installed capacity, with plans to ramp up to 90 per cent.

NNPC said, in a statement by its spokesman, Olufemi Soneye, reacting to the insinuations, “The refinery is producing the following daily outputs: Straight-run gasoline (Naphtha): Blended into 1.4 million litres of petrol; Kerosene: 900,000 litres; Diesel: 1.5 million litres; Low Pour Fuel Oil (LPFO): 2.1 million litres; Liquefied Petroleum Gas (LPG): Additional volumes.

“It is worth noting that the refinery incorporates crack C5, a blending component from our sister company, Indorama Petrochemicals (formerly ElemePetrochemicals), to produce petrol that meets required specifications.

“Blending is a standard practice in refineries globally, as no single unit can produce petrol that fully complies with any country’s standards without such processes.

“Additionally, we have made substantial progress on the new Port Harcourt Refinery, which will begin operations soon without prior announcements. We urge Nigerians to focus on the remarkable achievements being realised under the able and progressive leadership of President Bola Tinubu.

“Malicious attacks on clear progress only undermine the significant strides made by NNPC and the country. Let us move forward together in building a stronger and more self-sufficient energy sector.”

Meanwhile, the national leadership of Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) yesterday commended Tinubu and Kyari for the commencement of refining and loading at the Port Harcourt refinery.

Aside NMDPRA, the Major Energies Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and PETROAN also witnessed the commencement of operation at the refinery.

Others stakeholders at the event were Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), among others.

Speaking to THISDAY, the national spokesperson of PETROAN, Dr Joseph Obele, said the commencement of operation at the refinery was an evidence of commitment from stakeholders.

Obele credited the success of the project to Tinubu’s determination, stressing that it is happening after six years’ dormancy.

The Dr Billy Gillis-Harry-led body expressed optimism that the commencement of production at the refinery will usher in job opportunities, boost the economy, and trigger competition in the downstream sector, and result significantly in a downward price review.

PETROAN said, “PETROAN reaffirms her commitment to synergising with the management of NNPC retail and other stakeholders in ensuring that products lifted at the Port Harcourt refinery are well distributed to all the nooks and crannies of the nation at the right time with the right price”

Obele also dismissed insinuations that there will be a one-off loading at the refinery.

He stated, “We went round and the plant is up and running. As we speak, all the tanks are filled up with petroleum products. The benefit of what has happened today (Tuesday) is the fact that era of monopoly is gone, competition will now set in.

“Those who choose to buy from Dangote will buy from Dangote, those who choose to buy from the NNPC that commenced today can buy from NNPC.”

Obele also commended the host, Alesa Eleme, and other communities for their peaceful disposition during the rehabilitation. He called on the management of RCC, the company handling the East-West Road, to ensure speedy completion of the road to facilitate the smooth movement of trucks.

Deji Elumoye, Emmanuel Addeh and Blessing Ibunge

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