By Ayomide Otitoju
Two months after failing to meet its September deadline for the rehabilitation of the Port Harcourt Refinery, the Nigerian National Petroleum Company Limited (NNPC) has attributed the delay to unforeseen challenges in the project.
Speaking with The PUNCH on Monday, NNPC Chief Corporate Communications Officer, Olufemi Soneye, acknowledged that the refinery’s rehabilitation, a brownfield project, faced complexities during the commissioning of critical equipment and process units.
“Mechanical completion of the Port Harcourt Refinery Company revamp was successfully achieved several months ago, marking a significant milestone in the project,” Soneye said. “However, as is common with brownfield projects of this scale and complexity, we encountered unforeseen risks and challenges.”
Despite the setbacks, Soneye assured that these issues have been resolved and that work on the project has resumed. “Commissioning activities are ongoing, and work is being carried out around the clock to ensure the successful completion of this critical project,” he added.
When asked for a timeline for completion, Soneye stated only, “Shortly.”
Missed Deadlines and Rising Skepticism
The Port Harcourt Refinery, which has a capacity of 210,000 barrels per day, is one of three refineries owned by the federal government and managed by the NNPC. For years, it has remained non-operational, prompting the government to secure a $1.5 billion loan in March 2021 for its rehabilitation.
The NNPC has since failed to meet multiple deadlines for the refinery’s completion, including a promise by its Group Chief Executive Officer, Mele Kyari, that operations would begin in early August 2024. This marks the seventh missed deadline for the project.
The refinery was said to have reached “mechanical completion” in December 2023, with assurances that it would start refining 60,000 barrels per day by early 2024. Subsequent delays have been attributed to regulatory approvals, equipment testing, and operational challenges.
Contractors and Legal Hurdles
Maire Tecnimont SPA, the contractor overseeing the project, has remained silent on a new timeline. In response to a Freedom of Information (FOI) request by human rights lawyer Femi Falana, the firm’s legal representatives declined to disclose details, citing its status as a private company not subject to FOI obligations.
Falana’s request came amid public frustration over the lack of transparency regarding the project, as hopes for reduced fuel costs through domestic refining remain unfulfilled.
Continued Fuel Importation
Meanwhile, the NNPC has stated that it will continue importing fuel, noting that it is not the sole off-taker for products from the newly operational Dangote Refinery. This announcement has further dampened public optimism about local fuel production.
History of Promises
Over the years, the NNPC has made multiple commitments to revamp Nigeria’s refineries, including a 2019 pledge by Kyari to deliver all four refineries by the end of former President Muhammadu Buhari’s administration. Despite repeated assurances, the projects remain incomplete, raising questions about execution and accountability.
As the fourth quarter of 2024 draws to a close, Nigerians await concrete action on the Port Harcourt Refinery, which many view as critical to reducing the country’s reliance on imported fuel and alleviating the financial burden on citizens.
