NNPC Explains Reasons for Delay in Completing Port Harcourt amid High Petrol Imports
- The Nigerian National Petroleum Company Limited (NNPC) has explained that the Port Harcourt refinery encountered risks and challenges
- Olufemi Soneye, NNPC’s chief communications officer, disclosed that the refinery halted the mechanical completion due to the challenges
- He said that work has since resumed at the facility after resolving the issues but failed to disclose the completion date
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Two months after the September 2024 deadline given by the Nigerian National Petroleum Company Limited (NNPC) for the completion of the Port Harcourt Refinery, the company has explained why it could not deliver the stated date.
Olufemi Soneye, NNPC's chief corporate communications officer, said the company encountered risks and challenges during rehabilitation.
Source: UGC
NNPC begins commissioning critical parts
Soneye disclosed that the state oil firm began commissioning critical equipment and processing units after the mechanical completion.
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Punch reports that Soneye said the issues have been sorted, and commissioning activities have begun.
He stated that the work is ongoing to ensure the refinery’s completion.
NNPC has remained tight-lipped about the actual completion date for the refinery, whose repairs have lasted for over 24 months, with the completion deadline missed seven times.
The Port Harcourt refinery is one of the three refineries owned by the Nigerian government and managed by the NNPC.
Nigerians had hoped that the fuel price would crash if the facility refined petroleum products to end importation.
The national oil company insisted that it would continue to import petrol, stating that it was no longer the sole distributor at the Dangote refinery.
FG secures loan to fix refinery
In March 2021, the federal government obtained a $1.5 billion loan to repair and modernise the facility; however, the project's contractor has yet to announce its completion.
Legit.ng reported that the contractor handling the refinery’s rehabilitation declined to disclose the completion date despite a formal request by Femi Falana.
However, Soneye disclosed then that regulatory approvals from international agencies were stopping the commencement of the refinery’s operation.
Marketers, NNPC import two billion litres of petrol
Legit.ng earlier reported that the Nigerian National Petroleum Company Limited (NNPC) and other marketers imported over two billion litres of petrol in 42 days from October 1 to November 11, 2024.
As marketers increased petrol, diesel, and aviation fuel imports, local refiners kicked against the development, asking the government to stop issuing import licenses to marketers.
However, oil marketers insisted that the downstream petroleum sector had been deregulated and dealers could source products anywhere.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
