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NNPCL Reveals Setbacks Behind Port Harcourt Refinery Delays, No Clear Completion Date Yet

Published by Tope Fakinlede on November 19th, 2024.

NNPCL Reveals Setbacks Behind Port Harcourt Refinery Delays, No Clear Completion Date Yet

The Nigerian National Petroleum Corporation Limited (NNPCL) has explained the reasons behind the continued delays in the long-awaited revival of the Port Harcourt Refinery, acknowledging the challenges encountered during its rehabilitation.

In a recent interview, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, outlined the difficulties faced while working on the brownfield project. He explained that, although the refinery’s mechanical completion was successfully achieved months ago, several unforeseen risks and obstacles arose during the commissioning phase.

“We reached mechanical completion of the PHRC revamp several months ago, a major milestone. However, as is often the case with large-scale brownfield projects, unexpected challenges have arisen,” Soneye stated. “That said, these issues have been addressed, and commissioning activities are once again underway.”

Soneye assured that work is progressing around the clock to complete the refinery’s overhaul. However, he refrained from providing a specific timeline for the refinery’s operational launch, stating only that it would occur “shortly.”

This admission follows a series of missed deadlines, with the NNPCL having previously failed to meet its target of resuming operations by September 2024. The Port Harcourt Refinery, one of three government-owned refineries operated by NNPCL, has long been a source of hope for reducing Nigeria’s reliance on imported refined petroleum products.

The refinery, which has been non-operational for several years, was earmarked for rehabilitation with a $1.5 billion loan from the Nigerian government in 2021. Despite promises from the NNPCL and the Ministry of Petroleum Resources, progress has been slow, with many Nigerians expressing frustration over the delays.

Earlier this year, NNPCL’s leadership had promised the refinery would begin production by mid-2024, but these forecasts have repeatedly been revised. In an interview with the Senate, NNPCL Group CEO Mele Kyari stated that Port Harcourt would resume operations by August, but that deadline also came and went without the refinery’s return to service.

The contractor overseeing the refurbishment, Maire Tecnimont, has declined to share a specific completion date, citing its status as a private company not bound by the Freedom of Information Act. Legal representatives of the contractor have refused to disclose further details, leaving the public in the dark about the project’s progress.

Despite the setbacks, there remains hope that the refinery, once operational, will significantly reduce Nigeria’s reliance on imported fuel and lower domestic fuel prices. However, until the refinery begins production, the NNPCL continues to import fuel, and no clear timeline for the refinery’s completion has been set.