The Nigerian National Petroleum Corporation Limited (NNPCL) has announced that the test run on the 60,000-barrel-per-day (bpd) refinery in Port Harcourt will be completed this month, preceding the full resumption of operations later.
Femi Soneye, the Spokesperson for the NNPCL, conveyed this information yesterday, (Thursday, January 4, 2024) stating, “Testing will conclude shortly, ensuring the refinery’s efficient operation. That phase will be completed this month.” The refinery, currently undergoing repair works, is poised to commence operations with an initial processing rate of 60,000 barrels per day.
The NNPCL envisions reaching its maximum capacity of 210,000 barrels per day later in the year.
The Port Harcourt refineries are part of Nigeria’s state-owned refineries that have been dormant for several years. However, the government is actively working to revitalize these refineries as a strategic move to reduce the nation’s reliance on imported refined products.
In December, the NNPCL announced the successful completion of the Area 5 section of the Port Harcourt refinery, including mechanical completion and flare start-up. In March 2021, the federal government approved a $1.5 billion contract for the rehabilitation of the 210,000-barrel capacity Port Harcourt refinery. The rehabilitation, entrusted to the Italian company Tecnimont SPA, was scheduled to unfold in three phases spanning 18, 24, and 44 months.
Additionally, the CEO of the NNPCL has indicated that the second phase of repair works on the Port Harcourt refinery will be completed by the fourth quarter of 2024.
What you should know:
In recent years, Nigeria has aimed to end the importation of petroleum products to detach fuel prices from forex market volatility and control prices. The 650,000 bpd Dangote refinery is a key component of the government’s strategy to halt fuel imports, alongside refineries in Kaduna and Warri, which are expected to resume operations before the end of 2024.
Since the removal of the fuel subsidy in June, petrol prices have surged by over 200%, leading to increased transportation costs for the average Nigerian.
