After years of failed attempts to revive the moribund Port Harcourt refinery, the announcement by the Nigerian National Petroleum Company Limited (NNPCL) that the refinery has started truck loading of petroleum products is reassuring. It will hopefully mark a significant turning point for Nigeria’s downstream oil sector that holds so much promise for the economy. No doubt, the reactivation of the refinery will expectedly enhance domestic refining capacity, reduce the importation of petroleum products, and reduce petrol price and shortage across the country.
The Group Managing Director Chief Executive Officer of the NNPCL, Mele Kyari, who was obviously elated with the commencement of product loading at the refinery, described it as a ‘monumental achievement for Nigeria.’ He also stated that by the reopening of operations by the refinery, the management of NNPCL has fulfilled its pledge to reactivate the refinery and deliver quality petroleum products to the Nigerian markets. However, Kyari did not give the timelines for the revival of the Warri and Kaduna refineries that have been shut down for years now. Both refineries have installed capacity of 100,000 barrels of per day when fully operational. Established in 1965, the Port Harcourt refinery has two units, with the old plant having a refining capacity of 60,000 barrel per day (bpd), while the new one has installed capacity of 150,000 bpd, bringing the total capacity of the new Port Harcourt refinery to 210,000 bpd. The refinery was shut down in March, 2019 for the first phase of repair work after the federal government secured the services of Italy’s Maire Tecnimont to handle the review of the refinery complex, with oil major Eni appointed as technical adviser. In 2021, the Federal Executive Council (FEC) approved $1.5 billion for the project, and on December 21, 2023, the federal government announced the “mechanical completion” and its commencement of operations. The reopening of the Port Harcourt refinery is laudable. Although past administrations made frantic efforts to revive the nation’s major refineries, they did not succeed, despite spending billions of dollars on Turn Around Maintenance (TAM). Nonetheless, we welcome the revival of the Port Harcourt refinery located at Alesa Elema, in Rivers State. We also commend the management of NNPCL for fulfilling its promise to revamp the facility that caused the federal government $860 million to establish.
Nigerians are eagerly waiting for the full roll out of petroleum products from the plant that will address the present crippling fuel shortage and high cost of the product. With the 650,000 capacity Dangote refinery located at the Lekki Free Zone in Lagos already on stream, the benefits of these refineries must impact on the lives of the people and the economy. Henceforth, there is need for regular update on the management of the nation’s oil wealth. It is unfortunate that the management of the NNPCL has not been forthcoming with such updates. This is why Nigerians accuse the oil behemoth of opaqueness.
The doubt that trailed the reopening of the Port Harcourt refinery is quite unfortunate. Barely a day after the plant became operational, allegation surfaced from a leader of the host community, Chief Timothy Mgbere, saying that the plant has not resumed operation. He claimed that the petroleum products loaded from the facility on Tuesday were not newly refined but products stored in the storage tanks of the refinery in the last couple of years. However, NNPCL swiftly denied the allegation.
Its spokesperson, Olufemi Soneye, explained that the old and new Port Harcourt refineries had been integrated with one single terminal for product load-out. He stated that the claims of the community leader should be disregarded. Let the NNPCL be quick in communicating its activities to the public. Nigerians expect more transparency in the management of the oil company. We urge the management of the NNPCL to ensure the efficiency and sustainability of the newly revived Port Harcourt refinery. It must not produce below the installed capacity. For operational efficiency, the facility should be effectively and promptly maintained. We task the management of the NNPCL to pursue with vigour the reopening of Warri and Kaduna refineries. Their coming on stream will hasten the move to end the importation of refined petroleum products.