In a discussion with our correspondent on Monday, Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, outlined the various risks and challenges encountered during the rehabilitation process, which are typical of brownfield projects..
He highlighted that the NNPC had initiated the commissioning of essential equipment and processing units following the mechanical completion of the project in Nigeria.
“You may remember that we achieved mechanical completion of the PHRC revamp several months ago, which was a significant milestone. After that, we commenced the commissioning of key equipment and process units.
“However, as is typical with large-scale brownfield projects, we encountered unexpected risks and challenges,” he noted.
Despite these setbacks, Soneye assured The PUNCH that the issues have been addressed and commissioning activities are back on track.
He emphasized that efforts are ongoing to ensure the project's successful completion.
“These challenges have been effectively resolved, and we have resumed commissioning activities.
“We are working tirelessly to ensure the successful completion of this vital project,” he stated.
When asked about a timeline for the project's completion, he simply responded, “Shortly.”
It was noted that the NNPC has refrained from setting new deadlines for the refinery's delivery, having previously missed deadlines on seven occasions.
The Port Harcourt refinery is one of three owned by the Federal Government and operated by the NNPC.
There is widespread hope among Nigerians that domestic refining of crude oil could lead to a reduction in fuel prices and eliminate the need for imported refined products.
Last week, the NNPC announced that it would continue to import fuel, clarifying that it is not the exclusive off-taker of petrol from the Dangote refinery.
The refinery located in Nigeria's oil-rich Niger Delta has been operational since 1965 but fell into disrepair for several years. In March 2021, the Nigerian government secured a $1.5 billion loan aimed at renovating and modernizing the facility; however, the contractor responsible for the project has yet to provide a completion date.
Promises made by the Federal Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC) regarding the refinery have repeatedly faced setbacks. Following the failure to meet the sixth deadline in early August, Umar Ajiya, the then Chief Financial Officer of the NNPC, announced that operations were expected to begin in September 2024.
As September concluded, there was no communication from the NNPC regarding the refinery, leaving Nigerians without updates for nearly two months. Notably, Maire Tecnimont SPA, the contractor in charge of rehabilitating the Port Harcourt refinery, has not disclosed a completion date, despite a formal inquiry from human rights lawyer Femi Falana.
In response to Falana's request for information under the Freedom of Information Act, Maire Tecnimont’s legal representative, Muyiwa Ogungbenro, a partner at Olajide Oyewole LLP, sent a letter in early October stating that the Managing Director of Maire Tecnimont SPA, as an independent private contractor, is not required to provide such details under the FOI Act. The letter confirmed that they were acting on instructions from their client regarding the inquiries made on September 17 and 24, 2024, concerning the contract with the Nigerian National Petroleum Company Ltd.
"Our client operates as a private entity. As an independent contractor, our client does not fall under the control of any government entity and does not engage in public service functions or utilize public funds, thereby exempting them from the requirements of the Freedom of Information Act.
"For this reason, our client is unable to provide the requested information, as stated by Ogungbenro. Since that announcement, details regarding the refinery have remained undisclosed to the public, who are hopeful for lower petrol prices stemming from the facility's operations, Ogungbenro stated.
Starting in December 2023, the NNPC has been offering various timelines to Nigerians, promising that the refinery would soon commence the sale of refined products, claiming to have achieved mechanical completion.
In July, Mele Kyari, the Group Chief Executive Officer of the NNPC, asserted that the refinery would be operational by early August. He had previously stated in 2019 that the NNPC would ensure all four of the country’s refineries were operational before the conclusion of former President Muhammadu Buhari’s term last year.
During a Senate appearance in July, Kyari confidently remarked, “I can assure you, Mr. Chairman, that by year-end, this nation will become a net exporter of petroleum products.
Regarding the NNPC refineries, we have communicated with several of your committees, and it is not feasible for the Kaduna refinery to be operational before December; both Warri and Kaduna will reach that point in December, while Port Harcourt is expected to begin production in early August this year.”
However, this commitment was not met in August, marking the sixth delay. Although the NNPC maintains that progress is being made, the refinery has yet to begin operations as the fourth quarter approaches.
It is noted that the refinery, with a capacity of 210,000 barrels per day, was reported to have achieved what the NNPC termed mechanical completion of rehabilitation work in December, with plans to refine 60,000 barrels of crude oil daily following the Christmas break last year.
In late January, Kyari announced that the refinery was undergoing testing and was expected to be operational by the end of the month.
In February, the Shell Petroleum Development Company of Nigeria Limited successfully delivered 475,000 barrels of crude oil to the facility, heightening marketers' anticipation for the start of production.
This development followed the NNPC's January statement regarding its intention to partner with reputable operations and maintenance firms for the refinery's management.
By mid-March, Kyari indicated that the Port Harcourt refinery was set to begin operations within two weeks, specifically in April.
"We are committed to serving this nation with integrity, and we will ensure that our promises regarding the rehabilitation of these refineries are fulfilled," Kyari remarked after addressing the Senate Ad-hoc Committee investigating the various turnaround maintenance initiatives for the country's refineries.
As the April deadline passed, independent petroleum marketers projected that production would commence by the end of July.
In response, NNPC spokesperson Soneye noted that the only barrier to the refinery's operational launch was the need for regulatory approvals from international organizations.