• Wednesday, February 28, 2024
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BusinessDay

NNPC to transfer Port Harcourt Refinery operations to private entities

No clarity yet on transfer of crude oil proceeds to CBN

The Nigerian National Petroleum Company Limited has completed plans to turn over the government refinery to private operators as the Port Harcourt oil refinery comes online.

According to the NNPCL, it is looking to hire respectable and legitimate companies for operations and maintenance in order to run and look after the Port Harcourt Refining Company.

“To ensure reliability and sustainability towards meeting the nation’s fuel supply and energy security obligations,” it stated, was the purpose of this.

The NNPCL stated in a Monday website post that the contract’s scope will encompass various refinery business processes, including long- and short-term planning for production and operations, production and operations execution, monitoring, reporting, and optimisation of operations, maintenance execution, environmental management, health and safety, minor projects, and others.

A minimum average annual turnover of at least $2 billion for the fiscal years ending in 2019, 2020, 2021, and 2022, respectively, is what NNPCL requested interested companies to demonstrate.

For the purpose of testing it, the NNPCL had started supplying crude oil to the refinery in Port Harcourt.

The Federal Government announced the mechanical completion of rehabilitation work at the Port Harcourt Refining Company’s Area-5 Plant in Rivers State on December 21, 2023.

It stated that the first phase of the plant had been completed and that the facility would begin refining 60,000 barrels of crude oil daily following the Christmas holiday.

The Port Harcourt Refinery has been in operation since 1965 in Nigeria’s oil-rich Niger Delta region. The Alesa Eleme refinery complex is located about 25 kilometres east of Port Harcourt in Rivers State, Nigeria.

The Nigerian government approved a £1.08 billion ($1.5 billion) budget for the refinery complex’s renovation and modernisation in March 2021.