The Nigerian National Petroleum Company Limited (NNPCL) has announced that the long-awaited rehabilitation of the Port Harcourt Oil Refinery is nearing completion, with operations set to commence in two weeks.
Mele Kyari, the Group Chief Executive Officer of NNPCL, made this assurance during an interactive session with the Senate on Thursday.
“Now, we have crude oil already stocked in it. It is currently undergoing regulatory compliance test before we restream it. I assure you that this refinery will start in next two weeks,” Kyari said, emphasizing the commitment of NNPCL to meet its promises regarding refinery rehabilitation.
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He further elaborated on the progress made, highlighting the mechanical completion of the Port Harcourt Refinery in December and the ongoing regulatory compliance tests before its restart.
“We completed the mechanical completion of PHRC in December. Now, we have crude oil already stocked in it. It is currently undergoing regulatory compliance test before we restream it. I assure you that this refinery will start in the next two weeks,” Kyari assured.
Providing insight into the status of other refineries, Kyari mentioned the progress on the Warri refinery and the expected completion of the Kaduna refinery by December.
“For Warri, we have also done mechanical work on it. It is undergoing regulatory compliance processes that we are doing with our regulators. Kaduna will be ready by December this year, but we have not reached that stage. We believe that it will also be ready on schedule,” he said.
Kyari assured that promises made about the rehabilitation of these refineries will be kept.
He stressed the importance of cooperation from all stakeholders in the rehabilitation process, emphasizing the collective effort required to achieve success.
“We are all serving this country dutifully and loyally. Nigerians must understand that gradually, we shall get this task done,” he said.
The Senate Ad-hoc Committee is slated to conduct on-the-spot assessments of the refineries in Kaduna, Warri, and Port Harcourt, further underscoring the government’s commitment to transparency and accountability in the rehabilitation efforts.
This announcement coincides with a report by the Organization of Petroleum Exporting Countries (OPEC) indicating an increase in Nigeria’s crude oil production. According to OPEC’s Monthly Oil Market Report (MOMR) for March, Nigeria’s crude oil production rose to 1.476 million barrels per day (bpd) in February, reflecting a notable uptick from January’s figures.
Poor oil output has been a major concern in Nigeria’s move to rehabilitate its refineries, with the country still grappling with supply shortfalls for Dangote Refinery. The newly-launched 650,000bpd capacity plant, which started operation in January, broke ranks with its tradition of sourcing crude oil exclusively from Nigeria in February.
Trafigura Group reportedly brokered a deal to supply Dangote Refinery with 2 million barrels of WTI Midland crude, underscoring the enormity of Nigeria’s poor oil output amid its push to revitalize dormant refineries.
The refinery’s move to source crude oil from the US comes amid its supply deal with the Nigerian National Petroleum Company Limited (NNPCL). The NNPCL is obligated to supply crude oil worth $1 billion to the refinery as part of its payment for the acquisition of a 20 percent equity stake in the project.
This situation raises concerns regarding the ability of the Port Harcourt refinery to secure an adequate supply of crude once it begins production.