*Key stakeholders in the Nigerian oil and gas industry have commended the Federal Government on rehabilitating the 60,000 bpd capacity Port Harcourt Refinery, located in Rivers State, expected to resume partial operations Q1 2023 towards boosting fuel聽 supply in the country

Isola Moses | 绿帽献妻

Stakeholders in the Nigerian oil and gas industry have commended the Federal Government on rehabilitating the Port Harcourt Refinery, located in Rivers State.

It was learnt the petroleum refining facility being revived is expected to begin partial operations in the first quarter (Q1) of 2023.

Malam Mele Kyari, Group CEO of NNPC Limited聽

绿帽献妻 reports聽 the West African country’s perennial wholesale importation of petroleum products from overseas countries has resulted in recurring instability in the oil and gas sector of the economy.

The stakeholders spoke with the News Agency of Nigeria Thursday, January 12, 2023, in Lagos, and lauded the refinery rehabilitation initiative geared towards eliminating fuel importation in the West African country.

H.E. Chief Timipre Sylva, Honourable Minister of State for Petroleum Resources, Monday, January 9, had disclosed that the rehabilitation of the 60,000 barrel per day (bpd) refinery was nearing completion.

The Minister noted that the Port Harcourt Refinery would become operational Q1 of this year.

Sylva disclosed this development while giving an update on the Port Harcourt Refineries during the Ministry of Petroleum Resources 2022 scorecard in Abuja, FCT.

Speaking at the forum, Mr. Joe Nwakwue, an oil and gas consultant, stated: 鈥淏ringing back the refinery to operations is a welcome development and one hopes that the聽 two other refineries would also be resuscitated shortly.

鈥淲e need to exit fuel importation.”

Nwakwue said: 鈥淭he Federal Government does not have the resources presently to invest in the brownfield or even any greenfield refinery.

鈥淚 support and commend the Nigerian National Petroleum Company Limited (NNPCL) approach of taking minority equity in private refineries.

鈥淭his, essentially, helps derisk those investments, while also providing a path to national energy security.”

The former President of the Society of Petroleum Engineers also said his position had always been for government to sell its holding and give up operational control of the Nigerian refineries to competent private sector operators.

鈥淭his model allows the infusion of capital and know-how required for sustainable operation of these assets, while the government retains minority stake,鈥� he added.

In his contribution, Mr. Chinedu Okoronkwo, National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), applauded the Federal Government’s commitment to reviving the refinery.

Okoronkwo said: 鈥淭his is good news. To start with, it will reduce the pressure on importation of refined petroleum products.

鈥淚f the refinery bounces back it will go a long way to argument local production.

鈥淥bviously, it is a cheering news for marketers and Nigerians.”

Similarly, Mr. Tunji Oyebanji, a Chief Executive, said the Port Harcourt Refinery coming back on stream with production was definitely good news for the industry and Nigeria.

Oyebanji said: 鈥淭his development is consistent with the promise of the GCEO (Group Chief Executive Officer) of NNPC.

鈥淚 have never been a fan of government being involved in business.”

He further stated: 鈥淚 believe that it鈥檚 part of the reason the refineries became moribund in the first place.

鈥淚 think the refineries should be sold to capable and qualified private sector operators.”

Mr. Henry Adigun, an energy consultant, said: 鈥淚 think it is a good thing for government to revive the refinery.

“The idea is great and a laudable initiative.

鈥淭he refineries now belong to NNPC Limited. It should make a decision based on a cost benefit analyses.”

Adigun explained 鈥渢hat way, it will see how it can maximise returns.

“At the moment government does not own any refineries.鈥�

Port Harcourt Refineries comprise two units, with the old plant having a refining capacity of 60,000 barrels per day (bpd) and the new plant 150,000 bpd, both summing up to 210,000 bpd.

The refineries located at Alesa Eleme, approximately 25km east of Port Harcourt, were the largest in Nigeria before the emergence of the Dangote Refinery currently under construction in Lagos.

The refinery was commissioned in 1965 with an initial capacity of 35,000 barrels per day, and was later upgraded to 60,000 barrels per day in 1972.

The new refinery was commissioned in 1989 with an installed capacity of 150, 000 barrels per day, bringing its combined crude processing capacity to 210, 000 barrels per day.

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