Warri Refinery Resumes Operations Amid NNPC’s Drive for Domestic Fuel Production, Export Potential

The Nigerian National Petroleum Company Limited (NNPC) on Monday announced the restart of the 125,000 barrels per day (bpd) Warri Refinery and Petrochemical Company (WRPC), which was first approved for rehabilitation at the sum of $897 million in 2021.

In 2021, the Federal Executive Council (FEC) approved the sum of $1.48 billion for the rehabilitation of the Warri and Kaduna refineries, with the breakdown showing that $897 million was earmarked for the Warri refinery while $586 million was set aside for the rehabilitation of the Kaduna refinery.

Then Minister of State for Petroleum, Timipre Sylva, while addressing State House correspondents, after the FEC meeting chaired by former Vice President Yemi Osinbajo at the Presidential Villa, Abuja, said the contract, which was awarded to Messrs Saipem SPA and Saipem Contracting Limited, will be carried out in three phases.

The federal government stated that the rehabilitation exercise for the two refineries will run over a period of 77 months, with the first phase for the completion of the rehabilitation of the Warri facility set for 21 months; second phase 23 months, and third phase 33 months. These deadlines had been variously missed.

Nigeria has four national refineries, one each in Kaduna and Warri, and two in Port Harcourt. The 60,000bpd phase one of the Port Harcourt refinery began the refining of key fuels a few weeks ago.

The All Progressives Congress (APC) administration of former President Muhammadu Buhari had awarded the contract for complete rehabilitation and overhaul of the four state-owned refineries over three years ago.

THISDAY learnt that the Warri refinery had three plants for refining petroleum products, and an initial attempt to resuscitate the refinery penultimate Sunday was aborted when a leakage was discovered in one of the pipelines.

A highly placed source said the refinery was currently undergoing a test-run of its refining processes, and stressed that Naphtha had yet to be transferred to the Fluid Catalytic Cracking (FCC) unit for the production of Premium Motor Spirit (PMS) or petrol and gas.

Speaking on the development, Group Chief Executive Officer (GCEO) of NNPC, Kyari, during a tour of the facility on Monday, said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.

“I must congratulate our team for their determination and extreme belief that this company could restart this plant. This has brought the result we are seeing in collaboration with our contractors. We have proved that it is possible to restart a plant that you deliberately shut down. We have proved this.

“This plant has three stages. We have started stage one, which is called Area 1, able to produce AGO (diesel), Kerosene, naphtha and others. These are brands of high-quality products required in the country.

“We will also be able to export them. This country will make money to meet the promises of Mr President that this country will be an exporter of petroleum products.”

Kyari added, “I must put on record that the development was as a result of the charge by Mr President that we must get all three refineries to work. It is already happening. We have successfully started the Port Harcourt 65, 000 barrels per day refinery.

“We have also started the Area 1 of the Warri refinery. The other plants that will produce PMS (petrol) will also come live. Kaduna is also on stream. We are not going to give you a date but we will surprise you.”

On the team of the NNPC GCEO was Chief Executive Officer of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.

The Warri plant was commissioned in 1978, mainly to supply markets in the south and South-west regions of Nigeria.

Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, said on his X handle that the abundance of petroleum products was a sign that the deregulation of the downstream sector of the Nigerian oil and gas industry was working.

Lokpobiri stated, “For two consecutive years under the Renewed Hope administration of President Bola Tinubu, we have not experienced any scarcity of petroleum products during the festive periods – a remarkable departure from the challenges of the past. This consistency speaks volumes on the strides made in stabilising the downstream sector.

“This progress highlights one of the significant benefits of full deregulation in the downstream sector, initiated by President Tinubu with the removal of petroleum subsidies. By allowing market dynamics to determine prices, this policy has ensured the steady availability of products.”

The minister said, “However, regulatory practices require collective vigilance. I urge Nigerians to remain conscious of the litres being dispensed when purchasing fuel and to report irregularities promptly.

“Wishing everyone a wonderful celebration, let us all support this transformative effort for a sustainable energy future.”

Similarly, on Monday, Niger State Governor, Umaru Bago, lauded Tinubu and Kyari, describing the revival of the Warri refinery as a monumental achievement by the federal government.

Bago said, in a statement signed by his Chief Press Secretary, Bologi Ibrahim, that the reopening of the refinery was the outcome of “relentless efforts” by the government. He described the development “as unprecedented and a giant step towards restoring the hope of Nigerians through local production and refining of crude”.

The governor stated, “The president’s strides of reviving the Warri refinery back to operation after several years of being inactive has proven that he is willing to change the narrative in the petroleum downstream sector and once again bring Nigeria back to its glory days and restore the pride of the nation.

“The Warri refinery, which is operating at 60 per cent capacity and producing 125,000 barrels per day, will further complement the Port Harcourt refinery, which was also revived in November and now fully operational. It is a testament to President Tinubu’s Renewed Hope Agenda to better the lives of Nigerians as a major oil-producing nation.”

Bago also acknowledged the efforts of the management of NNPC, for working round the clock to ensure that the mandate set by the president was achieved, while also hoping that the Kaduna refinery and the 150,000bpd refinery in Port Harcourt will soon be fully operational.

Deji Elumoye, Emmanuel Addeh, Sylvester Idowu and Laleye Dipo

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