Port Harcourt Refinery Fails to Run After Mechanical Completion, Worries FG

Port Harcourt Refinery Fails to Run After Mechanical Completion, Worries FG

  • The NNPC’s inability to reach milestones critical to the goals of President Bola Tinubu's administration worries the presidency
  • According to insider, the government is also concerned about other significant NNPC projects that remain unfinished
  • This followed the "mechanical completion" of the refinery's rehabilitation work on December 21, 2023.

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The presidency is concerned about the Nigerian National Petroleum Company (NNPC) Limited's inability to meet milestones that are essential to President Bola Tinubu administration's objectives.

Port Harcourt Refinery's completion deadline remains a concern to major stakeholders in Nigeria
Port Harcourt refinery among state-owned refineries still awaiting completion in Nigeria. Photo Credit: FG, Andrew Holt
Source: UGC

Insiders claim that Hadiza Bala Usman, head of the Central Results Delivery Coordination Unit (CRDCU) and special assistant to Tinubu on policy and coordination, voiced the concerns during an examination of the Ministry of Petroleum Resources' quarterly performance evaluation (oil).

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Usman claimed that major NNPC projects that are still unfinished are causing the government concern.

The government source specifically stated that the Port Harcourt refinery and other state-owned refineries had not yet been completed due to NNPC's persistent delays.

This came after the "mechanical completion" of the refinery's rehabilitation work on December 21, 2023. It was gathered that operations were expected resume at the refinery following the Christmas holiday.

Usman, however, pointed out that there has been no word from the NNPC regarding whether or not the refinery will start producing this month, despite the company moving the start date of operations to April 2024.

According to reports, Usman emphasized that the government and Nigerians were concerned about the continual delays in the refinery's production start date.

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Usman was quoted as saying,

“This continued shifting in timelines is eroding the confidence of Nigerians in the government, and as an administration, we cannot allow that.”
“This is why Mr President mandated the CRCDU to track the deliverables and performances of all MDAs, and we have no option but to identify and engage the Ministry of Petroleum NNPC Ltd on the situation at hand.”

The source also stated that Usman's goal in restoring the refinery was to maximize its production capability as opposed to only "attain tokenistic and marginal production milestones."

She also voiced concern about the drop in crude oil production, which fell from 1.351 million barrels per day (mbpd) in 2023's fourth quarter to 1.265 million bpd in 2024's first quarter.

The government official also emphasized the need of cooperation between the NNPC and the security agencies in order to increase daily output and meet the government's objective of 1.65 million barrels per day for the second half of 2024, according to the source who spoke to TheCable.

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She also noted the significance of stepping up efforts to hasten the completion of the long-pending Obiafu-Obrikom-Oben (OB3) gas pipeline project.

According to what was learned, Usman stated that the CRDCU would enlist the aid of all parties involved to guarantee that the NNPC fulfills the president's directives about its performance metrics.

NNPC sets date for completion of Kaduna refinery

Legit.ng previously reported that the Nigerian National Petroleum Company Limited(NNPCL) announced that the rehabilitation work at the Kaduna refinery would be completed by the end of 2024.

Mustafa Sugungun, the managing director of KRPC, stated this following his tour of the plant with the Senate adhoc committee on petroleum downstream.

According to Sugungun, the 110,000 barrels per day Kaduna Refinery would begin operating at 60% capacity by year's end and reach full output after that.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

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Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng