NNPCL Attributes Port Harcourt Refinery Delays to Project Challenges
The Nigerian National Petroleum Company Limited (NNPCL) has shed light on the persistent delays in the Port Harcourt Refinery’s rehabilitation, acknowledging unforeseen challenges as the cause of the missed September 2024 completion deadline.
Speaking in an interview on Monday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, explained that the project’s complexity as a brownfield rehabilitation presented significant risks. He noted that despite achieving mechanical completion earlier this year, commissioning critical equipment and processing units revealed unexpected obstacles.
“Mechanical completion of the PHRC revamp was successfully achieved several months ago, marking a significant milestone in the project. Following this, we began commissioning activities. However, as is common with projects of this scale and complexity, we encountered unforeseen risks and challenges,” Soneye stated.
He assured that these issues had been resolved and that commissioning activities had resumed, with efforts ongoing to ensure the project’s completion. When asked for a specific timeline, Soneye said it would be “shortly.”
A Long History of Unmet Deadlines
The NNPCL’s reluctance to announce a new deadline reflects a history of seven failed completion targets, with Nigerians growing increasingly frustrated. Initially operational in 1965, the Port Harcourt refinery had been moribund for years until a $1.5 billion loan was secured in March 2021 for its renovation. Despite promises of reduced fuel costs through domestic refining, the project remains incomplete.
Last year, NNPCL announced the refinery would achieve mechanical completion by December and begin refining 60,000 barrels per day after the Christmas season. By January 2024, Group Chief Executive Officer Mele Kyari declared testing was underway, promising operations would commence by August. That deadline, like others before it, was missed.
Contractor Silence on Completion Date
Adding to the uncertainty, Maire Tecnimont SpA, the contractor handling the project, has declined to disclose a completion date. Human rights lawyer Femi Falana filed a Freedom of Information request seeking clarity, but the contractor’s legal representative, Muyiwa Ogungbenro, cited the company’s status as a private entity not bound by FOI obligations.
“Our client is a private company… not obligated under the Freedom of Information Act,” Ogungbenro stated in a letter dated October.
Implications for Nigerians
The delays have fueled public frustration, with many Nigerians hopeful that operational refineries would reduce reliance on imported fuel and alleviate high costs. However, NNPCL recently confirmed it would continue importing fuel and was not the sole off-taker of petrol from the Dangote Refinery.
As the fourth quarter of 2024 draws to a close, Nigerians await concrete action on the Port Harcourt Refinery, which has become a symbol of unfulfilled promises in the country’s energy sector.
