After several deadline shifts, Port Harcourt refinery commences Crude oil processing. This ends a series of failed deadlines over commencement of production at the refinery in the oil-rich Rivers State.
The Nigerian National Petroluem Company Limited’s (NNPCL) Chief Corporate Communications Officer, Femi Soneye, has stated as much.
“Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing. This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation,” Soneye said on Tuesday.
“Hearty congratulations to President Bola Ahmed Tinubu, the NNPC Board, and the exceptional leadership of GCEO Mele Kyari for their unwavering commitment to this transformative project. Together, we are reshaping Nigeria’s energy future!”
Soneye said truck loading will also commence on Tuesday (today), adding that the NNPCL is “working tirelessly to bring the Warri refinery back online soon.”
Recall that the Port Harcourt refinery was supposed to start production in September 2023 but was postponed until December of the same year. This was stated by Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), when he took office in August of that year.
In March of the following year, the Group Managing Director of NNPCL, Mele Kyari, said the refinery would begin production in April.
“We are focused on delivering this rehabilitation project, our two other refineries, and all other investments towards revamping the nation’s refining capacity,” Kyari said in August when he inspected the rehabilitation work at the Port Harcourt Refining Company (PHRC) Ltd
“We are hopeful that in 2024, this country will be a net exporter of petroleum products,” he said.
The Federal Government authorized $1.5 billion (1.2 billion euros) three years ago to rehabilitate the plant, one of the largest refineries in the nation that was shut down in 2019.
Nigeria has historically relied on the importation of petroleum products due to a lack of local refining capability, even though it is one of the biggest producers of crude oil.
Nigeria exchanges billions of dollars’ worth of crude for petrol, which it has long subsidized to keep prices low for its own market. When Nigeria was dealing with declining oil income and shortages of foreign currency, fuel imports and subsidies significantly depleted its foreign exchange reserves.
But in September 2024, the Dangote refinery began the production of petrol, months after it said the plant had started operation.
“Dangote Petroleum Refinery has commenced production of diesel and aviation fuel,” the group said. “This is a big day for Nigeria. We are delighted to have reached this significant milestone.”
Nigerians anticipate the Port Harcourt refinery and the Dangote refinery, which are already in operation, to mitigate the effects of the fuel subsidy reduction, which increased the price of the commodity from about N200 to more than N1,000 per litre.
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