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Tag: Port Harcourt refinery

  • Six things to know about Port Harcourt Refinery

    Six things to know about Port Harcourt Refinery

    The Nigerian National Petroleum Company Limited (NNPCL) on Tuesday, November 26, announced that the Port Harcourt Refinery has commenced operations.

    Its Chief Corporate Communications Officer, Olufemi Soneye, disclosed this in a message to The Nation.

    He said, “A Historic Milestone: Port Harcourt Refinery Begins Operations. Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing.”

    Here are a few things to know about the refinery:

    1. The Refinery situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965. The Alesa Eleme refinery complex is situated in Rivers State, Nigeria, approximately 25 kilometres east of Port Harcourt.

    2. In March 2021, the Nigerian government approved a $1.5 billion budget for the renovation and modernisation of the refinery complex.

    3. Each of the four turbogenerators in the refinery complex can generate 14 MW of electricity per hour, and each of the four boilers can produce 120 t of steam per hour.

    Read Also: Tinubu hails NNPCL on Port Harcourt Refinery revival, calls for accelerated energy reforms 

    4. The government hired Maire Tecnimont of Italy to oversee the refinery complex’s scoping, while oil firm Eni was named as the technical consultant. The refinery was closed in March 2019 for the first phase of repairs.

    5. The Refinery plant begins trucking out of products today, Tuesday, November 26, 2024

    6. It is one of the three owned by the Federal Government and managed by the NNPC.

  • Tinubu hails NNPCL on Port Harcourt Refinery revival, calls for accelerated energy reforms 

    Tinubu hails NNPCL on Port Harcourt Refinery revival, calls for accelerated energy reforms 

    President Bola Tinubu has lauded the Nigeria National Petroleum Company Limited (NNPCL) for the successful revival of the Port Harcourt refinery, marked by the commencement of petroleum product loading on November 26, 2024. 

    Issued on Tuesday, November 26, by his special adviser to the president on information & strategy, Bayo Onanuga, President Tinubu acknowledged the critical role of former President Muhammadu Buhari in initiating the comprehensive rehabilitation of Nigeria’s refineries.

    He also expressed gratitude to the African Export-Import Bank for financing the project, showcasing confidence in the nation’s energy sector. 

    The President specifically praised the Group Chief Executive Officer of NNPCL, Mr. Mele Kyari, for his steadfast leadership and commitment to overcoming challenges to achieve this significant milestone. 

    With the Port Harcourt refinery back in operation, Tinubu urged NNPCL to fast-track the rehabilitation of the second Port Harcourt refinery, as well as the Warri and Kaduna refineries.

    These initiatives, he emphasized, will bolster domestic production capacity, complement the output of privately owned refineries, and position Nigeria as a key energy hub. 

    He further highlighted the administration’s dedication to developing the gas sector, noting its transformative potential for Nigeria’s energy landscape.

    Read Also: JUST IN: Reps ask Tinubu to sack CCT chairman Umar

    The President underscores his administration’s determination to repair the nation’s refineries, aiming to eradicate the disheartening perception of Nigeria as a major crude oil producer that lacks the ability to refine its own resources for domestic consumption.

    Highlighting the values of patience, integrity, and accountability in the rebuilding of the nation’s infrastructure, President Tinubu calls upon individuals, institutions, and citizens entrusted with responsibilities to maintain focus and uphold trust in their service to the nation.

    In alignment with the Renewed Hope Agenda focused on shared economic prosperity for all, the President reaffirms his administration’s commitment to achieving energy sufficiency, enhancing energy security, and boosting export capacity for Nigeria.

  • VIDEO: Port Harcourt Refinery begins operation

    VIDEO: Port Harcourt Refinery begins operation

    The Nigerian National Petroleum Company Limited (NNPCL) on Tuesday, November 26, announced that the Port Harcourt Refinery has commenced operations.

    WATCH VIDEO BELOW

  • BREAKING: Port Harcourt Refinery begins operation

    BREAKING: Port Harcourt Refinery begins operation

    The Nigerian National Petroleum Company Limited (NNPCL) on Tuesday, November 26, announced that the Port Harcourt Refinery has commenced operations.

    Its Chief Corporate Communications Officer Mr Olufemi Soneye disclosed this in a message to The Nation.

    He said: “A Historic Milestone: Port Harcourt Refinery Begins Operations.

    Read Also: Petrol price slashed by Dangote Refinery

    “Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing.

    “This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation.

    “Hearty congratulations to President Bola Ahmed Tinubu, the NNPC Board, and the exceptional leadership of GCEO Mele Kyari for their unwavering commitment to this transformative project. Together, we are reshaping Nigeria’s energy future!” 

  • Port Harcourt refinery 90% completed, says Senate committee

    Port Harcourt refinery 90% completed, says Senate committee

    The Senate ad-hoc committee set up to investigate the turnaround maintenance of Nigeria’s refineries has said that the upgrade and full rehabilitation of the Port Harcourt refinery is at 90 percent completion and expected to commence operation before the end of the year.

    The chairman of the committee, Senator Patrick Ifeanyi Ubah (representing Anambra South senatorial district) disclosed this in Port Harcourt over the weekend when he led members of the committee on a courtesy visit to the Rivers Governor, Siminalayi Fubara.

    Senator Ubah’s announcement is coming on the heels of a similar announcement by members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) that the plant has largely been completed.

    The oil marketers through its Port Harcourt branch chairman, Tekena Ikpaki, told journalists that the plant would start releasing products any time soon, based on their visit to the facility, as well as information from members working at the refinery.

    He noted that the management of the refinery had also assured dealers that the plant would begin operations soon.

    Senator Ubah, who said his committee was in Port Harcourt to investigate the work that has been done and assess the level of preparedness of both the old and new Port Harcourt Refineries to recommence operations, gave no specific time for the commencement of operations by the refinery.

    He said: “We will recall that the old Port Harcourt Refinery was the first refinery in Nigeria built in 1965, and the second one was built in 1989. And for so long now, they have not been in active operations.

    “And with the Renewed Hope Agenda of Mr. President, and also the desire of Nigerians and our determination; the Senate led by our President, Senator Godswill Akpabio, we had a resolution in the Senate to look at it and make sure that Nigeria’s refineries are working so that we shouldn’t be depending on importation of petroleum products”, he said.

    Read Also: NNPCL seeks private firm to operate Port Harcourt refinery

    Senator Ubah stressed: “And that is one of the reasons that we are here, and as well to look into the contract and investigate the level of compliance vis-a-vis the contract specifications.

    “We are pleased to note that what we saw is most encouraging as the refinery upgrade and full rehabilitation is almost at 90 percent completed. We are confident that the refinery will soon be operational before the end of the year”.

    Addressing the committee, Governor Fubara stated that his administration was working in tandem with President Bola Tinubu-led federal government’s policies designed to make life better for Nigerians through the Renewed Hope Agenda.

    He stated that in doing so, the Woji-Aleto-Alesa-Refinery Road, now 70 per cent completed, was being constructed to provide a bypass to easily access the Port Harcourt Refinery and take off traffic from the East-West Road.

    The governor said the purpose of governance was to make life easy for the people and expressed delight that the Senate Committee’s investigation would result in making life easy and meaningful for Nigerians.

    “We, as a State, before the commencement of the rehabilitation job, had a contribution that we wanted to make to support the work at the refinery because of the deplorable state of the East-West Road.

    “There is a road: Woji-Aleto-Alesa Refinery Road. We are almost completing the bridge. It’s about 70 percent completed. We are doing almost the last part of it. With that road, it will help to decongest and reduce the trouble commuters face along the East-West Road while providing easy access, straight to the refinery.

    “So, you can see that our Government is working in line, supporting the Administration of President Bola Tinubu to give our people hope and assurance that things will soon get better.

    “And it is this role that you are playing, genuinely. And with the support of this State Government, that is the only way we can achieve the purpose of governance for everyone.

    “The purpose of governance is to make life easy for the people. I am happy that your investigation would result in making life easy for the people,” he explained.

    Governor Fubara pointed to the derivable benefits when the refinery is eventually revamped and becomes operational, both to the Federal Government and host Rivers State.

    “When the refinery restarts production, there will be petroleum products available locally. The issue of importation will go down. We will now make impact, economy will grow, internally generated revenue will increase. More projects will be executed in this State. You can see that it’s a chain effect thing. So, I want to thank you”, he said.

  • Port Harcourt refinery to complete test run this month – NNPCL

    Port Harcourt refinery to complete test run this month – NNPCL

    The Nigerian National Petroleum Corporation (NNPC) Ltd has revealed that test-run at the Port Harcourt refinery will be completed before the end of January, in a major step towards resuming operations five years after the plant was shut.

    “Testing will conclude shortly, ensuring the refinery’s efficient operation. That phase will be completed this month,” NNPC spokesperson Femi Soneye told Reuters on Thursday.

    Read Also: No fuel price hike, IPMAN, NNPCL insist

    Soneye added that the test run was a major step towards resuming operations five years after the plant was shut.

    The refinery, which is undergoing an upgrade, will begin by processing 60,000 barrels per day, and NNPC expects to operate at the full capacity of 210,000 barrels per day later this year.

    The state-owned oil company announced in December the mechanical completion of rehabilitation work on the Area-5 Plant of the facility.

    Port Harcourt is among Nigerian state-owned refineries that have been mothballed for years, but which the government is trying to revive to end the country’s reliance on imported refined product.

  • Port Harcourt refinery reopens after years of closure

    Port Harcourt refinery reopens after years of closure

    The Port Harcourt Refining Company in Rivers State has resumed operations, in line with the federal government’s commitment, aiming to produce refined goods at the plant by December 2023.

    The plant underwent turnaround maintenance and underperformance for many years prior to its development. 

    The total processing capacity of four Nigerian refineries, located in Port Harcourt, Warri, and Kaduna, is 445,000 barrels per day (bpd). However, in 2019, they were shut down.

    But in August, Senator Heineken Lokpobiri, the minister of state for petroleum resources (oil), said that the refinery will start up again in December.

    Lokpobiri said this during an inspection tour of the rehabilitation work progress at the PHRC Ltd. plant

    “Our objective in coming here today is to ensure that in the next few years, Nigeria stops fuel importation. From what we have seen here today, Port Harcourt Refinery will come on board by the end of the year,” he said during the visit.

    More than two years have passed since the federal government authorized $1.5 billion (1.2 billion euros) in funds to rehabilitate one of its largest oil refineries, when activities at the Port Harcourt plant resumed.

    The government selected Maire Tecnimont, an Italian company, to handle the facility’s repairs at the Port Harcourt location, which can produce about 210,000 barrels per day.

    “We are happy to announce that the rehabilitation of productivity refinery will commence in three phases,  the then-Minister of Petroleum (State) Timipre Sylva had told reporters.

    Read Also: Port Harcourt refinery ready this month, NNPCL insists

    “The first phase is to be completed in 18 months, which will take the refinery to a production of 90 percent of its nameplate capacity,” said Sylva, adding that the second phase would be completed in 24 months and the third in 44 months.

    Nigeria has been dependent on petroleum product imports despite having the largest oil producer in Africa due to a lack of refining infrastructure within the country. Fuel shortages occur often.

    However, the government has been attempting to increase capacity at the nation’s underperforming state-owned refineries as part of efforts to restructure the Nigerian National Petroleum Company Limited (NNPCL).

    The restoration of refinery operations at the plant and the start of a comparable project at the Dangote Refinery are expected to enhance fuel supplies in Africa’s top oil producer and enable savings on refined fuel and other petroleum products.

  • We’re satisfied with FG’s efforts to fix Port Harcourt refinery, says PENGASSAN

    We’re satisfied with FG’s efforts to fix Port Harcourt refinery, says PENGASSAN

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has said it is satisfied with the federal government’s efforts to fix the Port Harcourt refinery.

    It also urged the federal government to keep to its promise to ensure that the Port Harcourt refinery would start working by December this year.

    The Port Harcourt Zonal Secretary of PENGASSAN, Comrade Nnana Okeke said this in Uyo on the sidelines of a 4-day retreat organised for the Executive leaders of the zone by the Nigerian Content Development and Monitoring Board (NCDMB) in conjunction with Facilitation and Training Services Limited.

    Okeke said that the Port Harcourt refinery and other local refineries when functional will crash the pump price of fuel and alleviate the sufferings currently faced by Nigerians.

    Should the Port Harcourt refinery fail to work by December, Okeke said: “We will go back and restrategize. Our leadership at the national level told us that the Federal government said it will deliver on its promise, so for now let’s give them (FG) the benefit of the doubt.”

    He said that PENGASSAN was in support of the removal of fuel Subsidy and the efforts of President Bola Tinubu’s administration to provide palliatives to cushion the effects of the removal.

    Read Also: NRC confirms ticket racketeering among staff

    Okeke added: “As an association, we are not against fuel subsidy removal. But we requested that if it must be removed there are certain measures that need to be put in place to mitigate the effects of fuel subsidy removal on the citizens.

    “We requested that Palliative measures be provided and that the transportation system be improved because workers have to go to work. Another thing we requested is let’s make our refineries work.

    “By doing so, we will reduce our dependence on importation of the petroleum products. And the Federal government has assured us that by December the Port Harcourt Refinery will start working.

    “So, we believe that when we start refining locally definitely that will reduce the price of fuel. Those were among the things we put forward. Actually, we sympathize with the masses because this is something that is affecting everybody”

    On speculation in some quarters that the price of fuel pumps would be increased further, he responded, “Federal government has told us officially that they are not going to increase the fuel pump price beyond what it is currently. That’s what they’ve told us”

    The PENGASSAN zonal leader appreciated the management of NCDMB and its consultant for organising the retreat tagged “Professional and Personal Effectiveness” to help them update and improve their leadership skills in the zone.

    Also in his remarks, the Chief Executive Officer for Facilitation and Training Services Limited, Olumide Ajomale, said the NCDMB has deemed it fit to provide a platform for the zonal Executives of PENGASSAN to go through this programme specifically to enrich and strengthen their leadership skills.

    “It is an opportunity for the officers to come together and learn about contemporary issues in leadership, on how to improve communication skills. We are also going to delve into areas around Employment laws, and industrial relations in the Oil and Gas industry.

    “So this is a platform to deepen skills and ensure that they leave here better. Considering that these are union leaders, in the oil and Gas sector, when you have people who are better informed, with the relevant skills they can manage things more effectively.

    “And when we talk about managing things more effectively, they can get better results. So the retreat is useful for them in their various organizations, how to manage the resources available. And because the world is changing continuous learning is required for our survival.”

  • Refineries

    At last, the long proposed rehabilitation of the Port Harcourt Refinery has been flagged off. Speaking at an inspection of the two refineries, with a combined installed capacity of 210,000 barrels per stream day, Dr. Mikanti Baru, managing director of the Nigerian National Petroleum Corporation (NNPC), said the refinery would, at the end of the exercise, be capable of achieving 90 per cent capacity.

    However, he pointed out that the rehabilitation process would take place in two phases: the integrity test of the complex; and the instrumentation test of every equipment. He pledged both exercises would be concluded in six months.

    We support this move by the government, coming just before the inauguration of a renewed tenure. We take Dr Baru’s word that all four national refineries would be revamped, to ensure that much of our domestic consumption comes from the refineries.  That should slash subsidy cost on imported oil products; and conserve foreign exchange.

    We recall that the executive and legislative arms of government were literally at war last year, over the level of subsidy paid to sustain a stable price mechanism for the premium motor spirit (PMS), popularly called petrol. Under the Jonathan administration in 2012, the subsidy regime provoked a national street protest. We have continued to call for a realistic solution to the subsidy regime that has continued to fuel claims of fraud.  Last year, the NNPC claimed that daily petrol consumption stood at 53 million litres per day, while a claim of 30 million litres importation sparked the 2012 protest.

    It is unfortunate that policy somersaults have been the bane of the industry. At one point, the Minister of State for Petroleum, Dr. Ibe Kachikwu, said the refineries were worth nothing and would be sold off. On another occasion, the same minister said they would be revamped; and have their capacities boosted with location of privatized modular refineries, within the complexes. The government that toyed with total privatization is now settling for continuation of the existing model.  What exactly is happening?

    The government should be consistent, to engender confidence in the business community as well as in the general public. It should also be open. Nigerians deserve to know the full plans for the sector. Aside the first phase of rehabilitating the two refineries in Port Harcourt in six months, we ask: how long would the second phase last? What are the plans for the Warri and Kaduna Refining and Petrochemical Companies?

    The government has said the original builders of the Port Harcourt refineries, JGC of Japan, are being brought on board to gain time and facilitate its upgrade with cutting edge technology. ENI, a joint venture partner of the Federal Government, is also reportedly equally committed to the project.

    Still, Nigerians deserve to be informed of the cost outlay. As Dr. Baru pointed out, ostensible turn-around maintenance (TAM) of the refineries was undertaken in 2000 with little to show for it. This time, Nigerians want value for the public fund being committed.

    But much more than periodic bouts of maintenance, a comprehensive roadmap for the sector should be published. The combined capacity of the four refineries is put at 445,000 barrels per stream day. If huge fund is to be invested, the end must be obvious, discipline should be visible and Nigerian experts should be engaged alongside the foreign engineers.

    In 2017, the Buhari administration set up four committees to come up with detailed work plans.  The report should be reviewed and scrupulously followed. We expect the Ministry of Petroleum to come up with timelines for this project. Other African oil producing countries, Angola, Algeria, Egypt and even war-torn Libya have, over the years, managed their oil resources better.

    Nigeria should get better organized. This is one legacy President Muhammad Buhari owes this country.

  • Govt begins Port Harcourt Refinery rehabilitation

    The Federal Government has started the first phase of the rehabilitation of the 210,000 barrels per day (bpd) capacity Port Harcourt Refinery complex. It comprises the 60,000 bpd Old Refinery built in 1965 and the 150,000 bpd New Refinery, commissioned in 1989.

    The exercise, flagged–off by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, in the premises of the refinery in Port Harcourt, is coming 19 years after the last Turn Around Maintenance (TAM) the plant.

    The project, according to a statement,  will be executed by Milan-based Maire Tecnimont S.p.A, in collaboration with its Nigerian affiliate, Tecnimont Nigeria.

    The statement said Maire Tecnimont S.p.A is listed on Milan Stock Exchange with interest in international engineering and construction, technology and licensing, and energy business development, adding that the Tecnimont group had operations in 40 different countries, numbering about 50 operative companies with a workforce of about 5,500 employees.

    The GMD was quoted as saying that at the end of the phase 1, the Refinery complex should be able to reach 60 per cent capacity utilisation.

    It said NNPC is engaging eni/NAOC as Technical Advisor to support the Rehabilitation of PHRC, saying NNPC/PHRC would leverage Eni’s extensive refinery supply chain network and warehouses to procure critical materials for the programme.