Nearly two months after missing the September deadline for completing the Port Harcourt Refinery Company (PHRC), the Nigerian National Petroleum Company Limited (NNPCL) has detailed the challenges delaying the project.
Speaking to our correspondent on Monday, the NNPCL Chief Corporate Communications Officer, Olufemi Soneye, revealed that the rehabilitation process faced unforeseen difficulties, typical of brownfield projects.
“You may recall that mechanical completion of the PHRC revamp was successfully achieved several months ago, marking a significant milestone in the project. Following this, we began the commissioning of critical equipment and process units.
“However, as is common with brownfield projects of this scale and complexity, we encountered unforeseen risks and challenges,” Soneye said.
He assured the public that the challenges have been resolved and commissioning activities have resumed. “These issues have since been effectively resolved, and commissioning activities have resumed. Work is being carried out around the clock to ensure the successful completion of this critical project,” he added.
When asked about a timeline for the project’s completion, Soneye responded, “Shortly.”
Despite these reassurances, NNPCL has refrained from announcing new deadlines, having previously failed to meet seven deadlines.
Years of Unfulfilled Promises
The Port Harcourt Refinery, located in Nigeria’s Niger Delta region, has been inactive for years. Built in 1965, it is one of three refineries owned by the Federal Government and managed by NNPCL.
In March 2021, the Nigerian government secured a $1.5 billion loan to renovate the refinery, but the contractor, Maire Tecnimont SPA, has yet to announce its completion. Repeated assurances from the Federal Ministry of Petroleum Resources and NNPCL have not materialized.
After missing the sixth deadline in August 2024, NNPCL’s then Chief Financial Officer, Umar Ajiya, stated the refinery would begin operations by September. However, the deadline passed without updates, leaving Nigerians in the dark.
Legal Obstacles
In September, human rights lawyer Femi Falana sought clarity on the project’s completion date under the Freedom of Information Act. However, Maire Tecnimont SPA declined to disclose the information.
In a response letter, the company’s legal representative, Muyiwa Ogungbenro of Olajide Oyewole LLP, stated:
“Our client is a private company. Being a private independent contractor, our client is not a company in which any government has a controlling interest, and does not provide public services, functions, or utilize public funds to be bound by the obligations in the Freedom of Information Act.
“On this ground, our client regrettably cannot provide the information you have requested.”
A History of Missed Deadlines
Since December 2023, NNPCL has issued various assurances about the refinery’s readiness.
In July, NNPCL’s Group Chief Executive Officer, Mele Kyari, confidently declared:
“I can confirm to you, Mr. Chairman, that by the end of the year, this country will be a net exporter of petroleum products.
“Specific to NNPCL refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, but that of Port Harcourt will commence production early August this year.”
Despite these assurances, the refinery remains non-operational as 2024 draws to a close.
Mechanical Completion Achieved
In December 2023, NNPCL announced that rehabilitation work at the 210,000 barrels-per-day refinery had reached “mechanical completion.” The facility was expected to process 60,000 barrels of crude daily after the Christmas break.
By January 2024, Kyari claimed the refinery was undergoing testing and would be ready by month’s end. In February, the Shell Petroleum Development Company of Nigeria Limited delivered 475,000 barrels of crude to the facility, raising hopes of imminent production.
However, subsequent deadlines—including promises of April and July commencement—were missed, with NNPCL citing regulatory approvals as the final impediment.
Public Frustration
The continued delays have fueled public disappointment. Nigerians had hoped local refining would reduce the country’s reliance on imported fuel and potentially lower prices.
As 2024 nears its end, the Port Harcourt Refinery remains symbolic of unfulfilled promises in Nigeria’s energy sector.
