Why repairs on Port-Harcourt refinery is yet to be completed — NNPC Ltd
The Nigerian National Petroleum Company (NNPC) Limited has addressed the delay in the completion of the highly anticipated Port Harcourt Refinery Company (PHRC), two months after missing its September target for completion.
In a statement, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, attributed the delay to unforeseen challenges and risks involved in rehabilitating the brownfield project—a term used for upgrading and revamping existing infrastructure.
He explained that while mechanical completion of the refinery revamp had been achieved several months ago, the subsequent commissioning of essential equipment and process units encountered complications.
“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,” Soneye stated.
He noted that the inherent complexity of brownfield projects often leads to unexpected difficulties, but assured stakeholders that these challenges have been addressed. “These obstacles have now been effectively resolved, and commissioning activities are back on track.”
Soneye also said that efforts are ongoing to finalise the project, assuring that NNPC is working diligently to ensure its successful completion. However, when pressed for a new timeline, he refrained from giving a specific completion date, stating that the refinery would be finished and handed over “shortly.”
The Port Harcourt Refinery, one of three government-owned refineries operated by NNPC, has remained inactive for years, with many Nigerians hoping its restoration will help reduce fuel costs by boosting local refining capacity and decreasing the nation’s reliance on imported fuel.
In August 2024, the Nigerian Senate expressed concerns about the $1.5 billion approved in 2021 for the rehabilitation of the Port Harcourt Refinery, pointing out the lack of tangible results.
Senator Opeyemi Bamidele, Chairman of the Senate Ad Hoc Committee investigating the matter, voiced frustration over the ongoing dysfunction of government-owned refineries despite the billions of dollars invested in turnaround efforts. During a stakeholder meeting in Abuja, Bamidele highlighted the contrast between the poor performance of public refineries and the prosperity of private sector enterprises.
“The federal government has invested billions of dollars to maintain and turn around the state-owned refineries in Kaduna, Port Harcourt, and Warri. Yet, these refineries are still not functioning,” Bamidele said.
He specifically referenced the $1.5 billion allocated by the Federal Executive Council (FEC) in 2021 for the turnaround maintenance of the Port Harcourt Refinery, expressing concern that the investment had failed to deliver significant results.
Bamidele also stressed that the government’s approach to managing public companies appeared unfair, especially when private businesses continue to thrive.
“For us in the Senate, we believe it is unjust and unpatriotic to treat government businesses or public corporations as an orphan, while private businesses are flourishing and thriving,” he stated.
Despite the ongoing scrutiny, NNPC says it remains committed to completing the refinery’s revamp, which is expected to play a key role in Nigeria’s efforts to address its fuel supply challenges and reduce the nation’s dependence on costly fuel imports.
