NNPC Cites Challenges for Port Harcourt Refinery Delay, Avoids Setting New Deadline
The Nigerian National Petroleum Company (NNPC) has explained the continued delay in the completion of the Port Harcourt Refinery rehabilitation project, citing challenges tied to the complexity of working on the aging facility. The much-anticipated project has now missed multiple deadlines, including the September 2024 target.
Speaking in an interview on Monday, the NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, attributed the setbacks to risks encountered during the rehabilitation of the refinery, describing it as a “brownfield project.” He noted that while mechanical completion was achieved months ago, commissioning critical equipment and processing units faced disruptions.
“Mechanical completion of the Port Harcourt Refinery revamp was a significant milestone. Following this, we began commissioning critical equipment and process units. These issues have now been resolved, and commissioning activities have resumed,” Soneye said.
When asked for a new timeline for completion, Soneye responded, “Shortly,” but avoided committing to a specific date.
### Missed Deadlines Raise Concerns
The Port Harcourt Refinery, one of three government-owned facilities operated by the NNPC, has been inactive for years despite its importance to Nigeria’s energy sector. Rehabilitation of the facility was launched in 2021 with a $1.5 billion loan and is being handled by Italian contractor Maire Tecnimont SPA.
Since then, the project has failed to meet at least seven official deadlines. In July 2024, NNPC Group Chief Executive Officer Mele Kyari assured that the refinery would begin operations in August, a promise that was unmet. In response to continued delays, human rights lawyer Femi Falana filed a Freedom of Information request seeking clarity on the completion date, but the contractor has yet to provide one.
Rising Expectations, Unfulfilled Promises
Nigerians had hoped that reviving the refinery would reduce the country’s reliance on imported refined petroleum products and lower fuel costs. The facility, located in the Niger Delta, has a capacity of 210,000 barrels per day but has been largely inactive for decades.
In December 2023, the NNPC announced that rehabilitation work had reached mechanical completion, and the refinery would begin refining 60,000 barrels of crude daily after the Christmas break. However, the project faced further delays despite crude oil supply to the facility earlier this year by the Shell Petroleum Development Company.
Calls for Accountability
The repeated postponements have drawn criticism of the NNPC and the Federal Government, with stakeholders demanding greater transparency and accountability in managing the project.
During an earlier appearance before the Senate, Kyari had assured lawmakers that the refinery, along with the Warri and Kaduna refineries, would be operational by December 2024. However, with the year nearing its end, the Port Harcourt Refinery remains inactive, fueling growing frustration over unmet expectations.
Nigerians continue to await clarity on when the refinery will resume operations and fulfill its promise of easing the burden of high fuel costs.