The Nigerian National Petroleum Company (NNPC) Ltd. has fulfilled its pledge of re-streaming the Port Harcourt Refining Company (PHRC), signalling the commencement of crude oil processing from the plant and delivery of petroleum products into the market.
On Tuesday, trucks began loading petroleum products which include Premium Motor Spirit (PMS) or petrol, Automotive Gas Oil (AGO) or diesel and Household Kerosene (HHK) or Kerosene, while other product slates will be dispatched as well.
This was contained in a statement issued Tuesday by the Chief Corporate Communications Officer NNPCL Olufemi O. Soneye.
Speaking during a brief ceremony to mark the commencement of product- loading at the refinery in Port Harcourt, Group CEO NNPCL Mele Kyari described the commencement of the lead-out activities “as a monumental achievement for Nigeria which signifies a new era of energy independence and economic growth for the country.”
The GCEO particularly thanked President Bola Ahmed Tinubu for his unwavering support and understanding towards the rehabilitation project and for his persistence to ensure energy security for the country.
Kyari “also expressed deep appreciation to the NNPC Ltd Board of Directors and the entire staff for their support and commitment, which crystallized into the streaming of the refinery. He also commended the contractors for doing a great job in ensuring that the refinery is delivered despite all challenges.”
The GCEO further thanked Nigerians for their patience and for the legitimate expectations of the Company to deliver on the other refineries.
In his remarks, the Chief Executive of the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, congratulated the NNPC Ltd for the milestone and assured of his agency’s continued support towards the completion of rehabilitation work at the other refineries.
“The PHRC rehabilitation project is Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) project that is aimed at restoring the refinery to full functionality and renewal. It has achieved over 16 million man hours with zero Loss Time Injury (LTI),” the statement added.
…Operational capacity
It was learnt that the refinery would start with 60,000-barrel capacity per day, releasing Premium Motor Spirit, diesel, and others into the Nigerian market.
The Port Harcourt Refinery would be the second petrol-producing refinery after the Dangote Refinery commenced PMS production in September.
It is one of the three owned by the federal government and managed by the NNPCL.
Nigerians have been hopeful that the cost of fuel could crash if the country refines its crude and ends the import of refined products.
The refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years.
In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery.
Blueprint reports that promises made to Nigerians by the Federal Ministry of Petroleum Resources and the NNPC about the refinery failed seven times before now.
Barely two months after the September completion deadline failed, the NNPC explained last week why it could not deliver the much-awaited Port Harcourt Refinery at the scheduled time.
..Tinubu excited
Congratulating the NNPCL team, President Tinubu acknowledged “the pivotal role of former President Muhammadu Buhari in initiating the comprehensive rehabilitation of all our refineries and expresses gratitude to the African Export-Import Bank for its confidence in financing this critical project.”
The president commended the Kyari-led NNPCL “whose unwavering dedication and commitment were instrumental in overcoming challenges to achieve this milestone.
“With the successful revival of the Port Harcourt Refinery, President Tinubu urged NNPC Limited to expedite the scheduled reactivation o the second Port Harcourt refinery and the Warri and Kaduna refineries.”
He said the efforts would significantly enhance domestic production capacity 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.
The president underscored his administration’s determination to repair the nation’s refineries, aiming to eradicate the disheartening perception of Nigeria as a major crude oil producer that lacks the ability to refine its own resources for domestic consumption.
Highlighting the values of patience, integrity, and accountability in the rebuilding of the nation’s infrastructure, President 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.
…Cheery news, long overdue – Experts
Also in separate reactions, Nigerians lauded the breakthrough amidst several setbacks.
An economist, Aliyu Ilias, described the resumption of operations by the NNPC Ltd as cherry news.
Ilias told Blueprint that for Nigerians to get the benefit of the refinery, it has to be competitive, and urged the management of the company to also address the grey areas surrounding its operations.
“It is good news and cherry news that we have our refinery working. Its workability has not been analysed. So, how many barrels can this produce per day? What will the supply be like, how much are they selling it as NNPCL? These are the things we need to know,” said the analyst.
“It is not enough that it has started working, it should work and better the lives of Nigerians. For it to better the lives of Nigerians, it should compete with Dangote Refinery. So, if Dangote is selling at N980, they should be selling at N900 or N750 that is how we will know that it is actually working.
“Though it’s going to have an advantage in terms of forex, it’s also going to have an advantage on our GDP. It’s also going to make petroleum products available. So, this is the beauty of it.
“But, will it in any way reduce the costs of buying PMS, these are the things we need them to explain to us. How much will they be selling it to marketers?” Ilias further said.
On his part, Chief Emmanuel Okafor said the commencement of production at the refinery was long overdue.
While describing it as a positive development, he stressed that the action would lead to a better life for Nigerians.
“This is a positive development and a step in the right direction. The commencement of production at Port Harcourt Refinery is long overdue, and we hope it leads to tangible benefits, like reducing fuel prices and easing the burden on Nigerians.
“It’s crucial for the Kaduna Refinery to follow suit, as self-reliance in processing natural resources is key to true independence. Well done to Kyari and his team-let’s see sustained progress,” Okafor said.
In the same vein, Senator Shehu Sani expressed confidence that the commencement of production by the refinery will impact the price of petrol.
“Glad to hear that Port Harcourt Refinery has commenced production. We hope this will impact on reducing the price of petroleum products and make life easier for the masses.
“We are anxiously waiting for a similar gesture to Kaduna Refinery. A country that cannot process its natural resources is still a colony. Kudos to Kyari,” he said.
… AYCF hails Tinubu, NNPCL
in a similar commendation, the Arewa Youth Consultative Forum (AYCF) said: “The refinery’s capacity to process 60,000 barrels of crude oil daily and load 200 trucks with refined products highlights the dedication of the Federal Government and the NNPCL to addressing the nation’s energy needs.”
In a statement signed by its President-General, Yerima Shettima, the group described the development as a landmark achievement in Nigeria’s oil sector.
According to Shettima, the refinery’s revival under the Kyari-led NNPCL “marks a step toward self-sufficiency in petroleum products and is a testament to the government’s commitment to revitalising critical infrastructure.”
He added that “the facility’s operational status represents hope for the oil sector, which has faced years of setbacks.”
He further noted that the refinery’s reopening would reduce Nigeria’s reliance on imported fuel, stabilise prices, and bolster economic sovereignty.
Shettima emphasised “the broader implications of the development, including job creation and the alleviation of unemployment among youths. This achievement demonstrates the power of vision, determination, and strategic planning in overcoming longstanding challenges.”