The Nigerian National Petroleum Company (NNPC) Limited has explained the delay in completing the much-anticipated Port Harcourt Refinery Company (PHRC), two months after failing to meet the September target.
Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, attributed the delay to unforeseen challenges and risks involved in rehabilitating the brownfield project.
“Mechanical completion of the PHRC revamp was achieved several months ago, marking a crucial milestone. After that, we began commissioning essential equipment and process units,” he said in a statement seen by BusinessDay.
He noted that the inherent complexity of brownfield projects often leads to unexpected difficulties but assured that these challenges had been addressed, “These obstacles have now been effectively resolved, and commissioning activities are back on track.”
Soneye emphasised that efforts are ongoing to finalise the project, stating, “We are working around the clock to ensure this vital project is completed successfully.”
The NNPC has now said that the Port Harcourt refinery will be finished and handed over “shortly” when pressed for a new timeline without providing a specific completion date.
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The Port Harcourt refinery, currently inactive, is one of three owned by the Federal Government and operated by the NNPC. Nigerians remain hopeful that the refinery’s restoration will cut fuel costs by enabling local refining and reducing reliance on imported fuel.
In August, the Nigeria Senate expressed worries regarding the $1.5 billion approved in 2021 for the turn-around maintenance of the Port Harcourt Refinery, noting a lack of any significant results.
Opeyemi Bamidele, Chairman of the Senate Ad Hoc Committee investigating alleged economic sabotage in the Nigerian Petroleum Industry, voiced these concerns during a stakeholder meeting on Wednesday in Abuja.
Bamidele, who is also the Senate Leader, stressed that it is unjust and inappropriate to overlook public companies while private enterprises continue to prosper.
He recalled that the Federal Executive Council (FEC) had approved a $1.5 billion plan by the Ministry of Petroleum Resources in 2021 to rehabilitate and revamp the Port Harcourt Refinery.
Bamidele expressed concerns about the dysfunctional state of government-owned refineries, despite the billions of dollars spent on maintenance and turnaround efforts.
“The federal government has invested billions of dollars to maintain and turn around the state-owned refineries in Kaduna, Port Harcourt and Warri. But the refineries are not functioning.
“In 2021, specifically, the Federal Executive Council approved 1.5 billion dollars for the turn-around maintenance of the Port Harcourt Refinery. Yet, this investment has not yielded significant returns.
“For us in the Senate, we believe, it is unfair and unpatriotic to treat government businesses or public corporations as an orphan while private businesses are flourishing and thriving,” Bamidele said.
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