NNPC Begins Work on Another Nigerian Refinery, Dangote Set to Get Strong Competition
- Nigeria’s fuel market braced for fresh competition as the NNPC began early repairs at the Port Harcourt Refinery
- Petroleum product marketers under PETROAN confirmed that the NNPC had awarded an assessment contract for the refinery’s repair
- The move was seen as a direct challenge to Aliko Dangote’s refinery dominance, just weeks after the billionaire cast doubt on its functionality
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The Nigerian downstream petroleum industry is set for another shakeup as the Nigerian National Petroleum Company Limited (NNPC) has commenced repair works on the Port Harcourt Refinery.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) disclosed that the NNPC has commenced the process of revamping the Port Harcourt Refinery via an assessment of the plant by a possible private firm under the Technical and Equity (T&E) partnership scheme.
Source: Facebook
Preliminary repair works begin at PH Refinery
PETROAN said that the assessment contract awarded to UOP, an international firm, is a commitment to making the refinery functional and viable.
The association commended NNPC’s chief executive officer, Bayo Ojulari, for the development.
According to a report by The New Telegraph, PETROAN’s national public relations officer, Joseph Obele, disclosed this at the weekend.
Obele expressed appreciation for the decision to engage a technical partner to assess the refinery’s condition to enable informed decision-making by potential investors.
The statement reads:
“This development signals a positive step towards restoring the refinery’s functionality. The T&E model has already worked successfully at NLNG Bonny, and we strongly support its adoption for the Port Harcourt Refinery, trusting it will bring operational effectiveness and efficiency.”
PETROAN: PH refinery to end monopoly
PETROAN’s national president, Billy Gilis-Garry, disclosed that the operationalisation of the plant will serve as a price check mechanism, giving a crucial safeguard against monopoly in the country’s downstream sector.
He stated that the move will yield the necessary benefits to stakeholders, host communities, retailers, and consumers by providing competitive pricing and preventing unfair market pricing.
The PETROAN boss expressed appreciation to the Nigerian government for its leadership and vision in driving initiatives that will boost Nigeria’s economy.
Dangote passes verdict on NNPC refineries
The development comes after a statement by Chairman of the Dangote Group, Aliko Dangote, that the Port Harcourt and other government-owned refineries may not function again.
The NNPCL had been embroiled in a huge scandal after its attempt to revamp the three refineries failed.
Reports confirm that over $18 billion was allocated and released for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries.
Dangote said there is a high chance that all three may never work again.
NNPC replies to Dangote
However, responding to the billionaire, the NNPC boss, Ojulari, reiterated the government’s desire to restore operations at the Port Harcourt, Warri, and Kaduna refineries.
Speaking at the Energy and Labour Summit organised by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja, Ojulari dismissed calls for their sale.
Source: Getty Images
He maintained that reviving the state-owned facilities was still in Nigeria’s best interest, insisting that privatisation would “lead to further value erosion.”
NNPC reveals plans for Nigerian refineries
Legit.ng earlier reported that Bayo Ojulari, the Group Chief Executive Officer of the NNPC revealed that there was ongoing consideration to sell some of the national refineries.
According to him, there are serious challenges in getting them to work efficiently despite rehabilitation efforts.
Bloomberg reported that Ojulari hinted at the decision while speaking at the 9th OPEC International Seminar in Vienna.
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Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
