The Nigerian National Petroleum Company (NNPC) Limited is grappling with persistent challenges in concluding the long-promised turnaround maintenance of the Port Harcourt Refinery, according to insider sources. Despite assurances from officials and a hefty $1.5 billion investment approved by the federal executive council (FEC) in 2021, the Port Harcourt Refining Company (PHRC) remains non-operational, frustrating expectations and raising questions about the refinery’s future.
The PHRC operates two facilities: an older refinery with a capacity of 60,000 barrels per stream day (bpsd) and a newer plant with an installed capacity of 150,000 bpsd, giving the complex a combined capacity of 210,000 bpsd. Yet, despite repeated assurances, the plant has not yet delivered a single barrel of refined fuel.
Port Harcourt Refinery: Missed Deadlines and Rising Concerns
The NNPC began repair works at the Port Harcourt Refinery on May 6, 2021, but progress has stalled repeatedly. Despite several statements projecting imminent functionality, sources suggest that significant engineering challenges have plagued the project, including structural obsolescence, extensive corrosion, lack of structural baseline data, and missing as-built data critical to repair work.
After several missed deadlines, the NNPC announced on December 21, 2023, that it had completed the mechanical phase of the turnaround maintenance, with Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri stating that production would commence following the holiday season. Yet, by January 2024, NNPC spokesperson Femi Soneye told Reuters that final testing was underway, although production had yet to begin.
The deadline was extended to the end of March, with NNPC Group Chief Executive Officer (GCEO) Mele Kyari asserting that production was imminent, but another delay ensued. By July, Lokpobiri reassured the public that repairs were nearing completion, yet the plant remains non-operational.
In August, Kyari again projected that production would begin within weeks, yet the Port Harcourt Refinery has not produced any fuel as of October 2024.
Weighing Options: Retrofitting the Refinery
With the refinery still idle, the NNPC is reportedly considering alternative strategies to keep the facility functional. Sources close to the project disclosed that one option under consideration is retrofitting the plant to serve as an oil blending facility. Unlike a refinery, a blending plant would not process crude oil but could blend re-refined oil, such as treated used motor oil, with additives to produce lubricant products.
A document obtained by TheCable shows that on August 27, a PHRC representative contacted an official at NNPC Trading Limited, seeking the procurement of high RON (Research Octane Number) gasoline to blend with Naphtha produced from the refinery’s 60,000-bpsd facility. According to the document, PHRC requested two shipments of petrol, each approximately 28 kilotonnes (KT) with an RON specification of 94. These shipments were intended for delivery to the Okrika Jetty in Port Harcourt in September and October, with draft limitations at the jetty restricting the maximum shipment size to 30 KT.
However, when contacted by TheCable, NNPC denied any plans to repurpose the refinery as a blending plant. The company stated that such a conversion “does not align with the company’s business model.” Additionally, NNPC clarified that there are no plans to import RON 94 off-spec fuel for blending, affirming that the company, alongside its engineers and partners, remains committed to commissioning the old refinery while rehabilitation efforts continue on the newer facility.
Ongoing Challenges and the Path Forward
The Port Harcourt Refinery’s struggles highlight the complex challenges of restoring Nigeria’s refining capacity. NNPC’s recent statements suggest ongoing dedication to completing the rehabilitation; however, the timeline remains unclear as technical issues continue to impede progress.
Industry experts suggest that consistent government oversight, improved project management, and transparent communication are critical to realising the refinery’s full potential. For now, Nigerians await a clear path forward, hoping for a successful outcome to this prolonged rehabilitation effort, which promises to reduce the country’s reliance on imported petroleum products and strengthen domestic energy security.
