Uncertainty Looms Over Port Harcourt Refinery’s Amidst Doubts and Delays

Uncertainty Looms Over Port Harcourt refinery’s resumption of fuel production by December 2023, following its extensive Turn Around Maintenance initiated in 2019, is now shrouded in doubt. Doubts are being cast by critical stakeholders in the oil and gas industry who harbor reservations about the feasibility of the Federal Government’s timeline.

Originally slated for completion in 2021, the project’s deadline was pushed to December by the administration of President Bola Tinubu as part of an agreement with Organized Labour in response to threats of strikes due to the removal of fuel subsidies.

The Minister of State for Petroleum Resources (Oil), Mr. Senator Heineken Lokpobiri, recently reassured the public that the refinery would indeed become operational by December 2023. However, this declaration has been met with skepticism from those in the industry who view the national asset as a source of corruption and financial mismanagement.

Critics argue that the allocated $1.5 billion for the refinery’s rehabilitation has become a conduit for misuse among government officials. A mechanical engineer in the oil and gas sector noted that progress on the rehabilitation has been sluggish, citing community unrest as a major hindrance to the contractors’ progress.

Joseph Obele, Chairman of the Independent Petroleum Marketers Association of Nigeria, Rivers State Branch, criticized the pace of the refinery’s rehabilitation last year, describing it as “snail speed.” He deemed it unrealistic for the refinery to commence production by 2023, pointing out that crucial components of the refinery had not even arrived in the country as of last year.

Uncertainty Looms Over Port Harcourt some people have raised concerns about a perceived lack of commitment from the government towards the refineries’ revival, asserting that selling crude quotas or allocations designated for local refining in dollars proves more lucrative. Johnson Ngei, a youth leader, alleged violations of the Community Guidelines of the Local Content Act, particularly in the realm of employment. Ngei claimed that job slots were being sold, with prices ranging from N200,000 to N2 million depending on the position, which led to community protests against the contractors.

Former Minister of State for Petroleum, Timipre Sylva, had previously assured that the rehabilitation of the 60,000 bpd Port Harcourt refinery would commence in Q1 2023. Similarly, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Mele Kyari, had asserted that the ongoing rehabilitation would be completed by March 2023.

Kyari stated that the project had reached 30 percent completion and was on track to meet the target of March 2023. The comprehensive survey contract for Port Harcourt Refineries by Sapiem Engineering Company was also discussed, with additional funds approved for the inspection of Warri and Kaduna refineries.

Amidst these assurances and doubts, the fate of the Port Harcourt refinery’s resurrection hangs in the balance, leaving industry insiders and the public keenly awaiting developments that will determine its future.

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