Lagos — Nigeria's domestic refining capacity, yesterday, increased by 67.7 per cent to 860,000 barrels per day, bpd, from 650,000 bpd, as the Port Harcourt Refinery resumed production.
Before commencement of operations, the nation depended on output coming from the 650,000 bpd Dangote Refinery and importation.
At their full capacities, both the Dangote Refinery, and Nigerian National Petroleum Company Limited, NNPCL's Port Harcourt-based refinery will yield 136.7 million litres of petrol per day, based on 159 litres/barrel conversion rate.
This, it was gathered will be in excess of the nation's daily national demand, currently estimated at 40 million litres by stakeholders.
Lifting begins in Port Harcourt Refinery -- NNPCL
In his statement, yesterday, Chief Corporate Communications Officer of NNPCL, Mr. Olufemi Soneye, said the company has fulfilled its pledge of re-streaming the Port Harcourt Refining Company, PHRC, signaling commencement of crude oil refining from the plant and delivery of petroleum products into the market.
He said: "On Tuesday (yesterday), trucks began loading petroleum products which include Premium Motor Spirit (PMS) or petrol, Automotive Gas Oil (AGO) or diesel and Household Kerosene (HHK) or Kerosene, while other product slates will be dispatched as well."
Also, speaking at a brief ceremony to mark commencement of products loading at the refinery, yesterday, in Port Harcourt, Rivers State, the Group Chief Executive Officer, GCEO, of NNPCL, Mr. Mele Kyari described the commencement of loadout activities as a monumental achievement for Nigeria, which signifies a new era of energy independence and economic growth for the country.
The GCEO particularly thanked President Bola Tinubu, for his unwavering support and understanding towards the rehabilitation project and for his persistence to ensure energy security for the country.
Kyari also expressed appreciation to the NNPC Ltd., Board of Directors and the entire staff for their support and commitment, which crystallized into the re-streaming of the refinery. He also commended the contractors for doing a great job in ensuring that the refinery was delivered despite all challenges.
The GCEO further thanked Nigerians for their patience and for the legitimate expectations on the company to deliver on the other refineries.
On his part, CEO of the Nigerian Midstream & Downstream Petroleum Regulatory Authority, NMDPRA, Mr. Farouk Ahmed congratulated the NNPCL for the milestone and assured of his agency's continued support towards the completion of rehabilitation work on other refineries.
The PHRC rehabilitation project, is an Engineering, Procurement, Construction, Installation & Commissioning, EPCIC, project aimed at restoring the refinery to full functionality and renewal. It has achieved over 16 million man-hours with zero Loss Time Injury (LTI).
Marketers await product prices from NNPCL
Meanwhile, oil marketers have reacted positively to the re-streaming of the Port Harcourt Refinery by NNPC Limited following years in coma that have cost the country billions of dollars in foreign exchange.
The national oil company, which had consistently failed to meet self imposed deadlines to reopen the facility, announced on Tuesday that the refinery has commenced operations with the loading of the trucks of petrol, diesel and kerosene.
Speaking to Vanguard, National President, Independent Petroleum Marketers Association of Nigeria, IPMAN, Alhaji Abubakar Shettima expressed happiness at the reopening of the refinery, describing it as good news for the country and the industry.
Alhaji Shettima said the marketers could not say much about the reopening as they have not had any prior discussions with NNPC.
"We feel very happy and it is good news for everybody. We are happy with the new development. But we cannot say much. We will wait for NNPC to disclose the price it will sell its products and that will determine how marketers will react," he stated.
Reactivate Warri, Kaduna refineries --Tinubu
President Tinubu has, meanwhile, directed the management of NNPCL, to expedite action towards scheduled reactivation of the second Port Harcourt refinery and the Warri and Kaduna refineries.
The President also extended his congratulations to the NNPCL, on the successful revitalization of the Port Harcourt refinery, marked by the official commencement of petroleum products loading on November 26, 2024.
President Tinubu acknowledged the pivotal role of former President Muhammadu Buhari in initiating the comprehensive rehabilitation of all four refineries and expressed gratitude to the African Export-Import Bank for its confidence in financing this critical project.
A statement by Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, further added that Tinubu commended the leadership of NNPCL GCEO, Mr. Kyari, "whose unwavering dedication and commitment were instrumental in overcoming challenges to achieve this milestone."
The statement said: "With the successful revival of the Port Harcourt refinery, President Tinubu urges NNPC Limited to expedite the scheduled reactivation of both the second Port Harcourt refinery and the Warri and Kaduna refineries.
"These efforts will significantly enhance domestic production capacity alongside the contributions of privately-owned refineries and make our country a major energy hub, with the gas sector also enjoying unprecedented attention by the administration.
"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 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 called 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," it added.
Nigerians expect to reap benefits -- NUPENG
The Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, however, expressed excitement over resumption of refining of petroleum products by Port Harcourt Refinery, saying "We are reminded of the essential role this progress plays in addressing Nigeria's energy challenges, alleviating hardship for workers and citizens, and fostering economic stability."
Reacting to the news that the Port Harcourt Refinery has finally come on stream, NUPENG in a statement by its President and General Secretary, Prince Williams Akporeha and Afolabi Olawale, respectively, among others, said: "On behalf of the National Executive Council, NEC, and the entire membership of the NUPENG, we extend our warmest congratulations to the Group CEO, Mr. Kyari and the entire management of NNPCL on this monumental achievement of successfully re-streaming the Port Harcourt Refinery after several years.
"The commencement of crude oil processing and the dispatch of petroleum products from the refinery is a landmark achievement that resonates deeply with the aspirations of Nigerian workers and citizens. This milestone demonstrates NNPCL's unwavering commitment to achieving energy independence and fostering sustainable economic growth for our dear nation.
"Your exemplary commitment and resilience in steering the Port-Harcourt Refinery Company, PHRC, rehabilitation project to completion, despite numerous challenges, reflect the highest standards of dedication and determination.
"We are very pleased with the achievement of over 16 million man-hours without a single Loss Time Injury (LTI), which is a testament to meticulous planning, professionalism, and the hard work of all involved, an accomplishment that brings pride to our union members.
"We commend the indispensable support of President Tinubu, as well as the collaborative efforts of the NNPCL Board of Directors, staff, and contractors. This accomplishment is a clear demonstration of what can be achieved through collective effort and shared commitment to national progress.
"As the refinery resumes production and begins loading critical products such as PMS, AGO, and HHK, we are reminded of the essential role this progress plays in addressing Nigeria's energy challenges, alleviating hardship for workers and citizens, and fostering economic stability.
"While the successful re-streaming of the Port Harcourt Refinery stands as a beacon of hope, it also reinforces our collective optimism for the rehabilitation of the Warri and Kaduna refineries. We earnestly hope and pray that these projects will also come to fruition soon, providing the much-needed stimulus to our nation's economy and further easing the energy burden faced by Nigerians. We remain confident that NNPCL will deliver on these expectations under your visionary leadership.
"Once, more congratulations to you and your team on this transformative achievement. The NUPENG remains a steadfast partner in the collective journey toward achieving a vibrant, inclusive, and sustainable oil and gas sector that uplifts every Nigerian worker and citizen."
Refinery, succour to economy -- ETROAN, CPPE
Also, Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has stated that the commencement of operations at the Port Harcourt Refinery was a succor to the nation's economy.
In a letter in Port Harcourtm yesterday, the National Public Relations Officer, PETROAN, Dr. Joseph Obele, commended the Group CEC of NNPCL, Kyari for demonstrating incredible leadership skills and commitment to the nation's development.
The letter read: "The National Headquarters of PETROAN Abuja is thanking the Group CEO of NNPCL, Alhaji Kyari for demonstrating incredible leadership skills and commitment with his team for making the commencement of production and loading at the Port Harcourt refinery a reality.
"The success of the revamping project is no doubt credited to the funding determination of President Tinubu, hence with a deep sense of responsibility and a heart full of gratitude, we write on behalf of PETROAN to express our profound appreciation to Mr. President.
"PETROAN was fully on ground with National President Dr Billy Gillis Hary and other national officers of PETROAN at the ceremonial commencement at Alesa Eleme and indeed the smile on people's faces was a clear indication of Joy arising the commencement of loading after a six years dormant state.
"PETROAN expresses optimism that the commencement of production at Port Harcourt refinery will usher in job opportunities, boost the economy and trigger competition at the downstream sector which will invariably reflect significantly to a price downward review.
"PETROAN reaffirms her commitment to synerging with the management of NNPC Retail management and other stakeholders in ensuring that products lifted at the Port Harcourt refinery depot are well distributed to all the nooks and crannies of the nation at the right time with the right price.
"Furthermore, we appreciate members of the host communities for the peaceful corporations given during the rehabilitation even as we call on the management of RCC handling the East West road to ensure speedy completion of the Eleme East West road in view of making the road smooth for the movement of trucks carrying petroleum products due to the hazardous and flammable nature of petroleum products."
Similarly, the CEO, Centre for the Promotion of Private Enterprise, CPPE, Dr. Muda Yusuf, said: "The Port Harcourt refinery coming on stream is a welcomed development and I hope production is sustained. It will help ease products supply to the South and Eastern part of the country.
"However, what we need to sustain the development is a structured management that is devoid of interference from the bureaucrats (political class, civil servants). A model like that of NLNG, if incorporated, will salvage the sector."
Nigerians deserve transparency -- LP
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On its part, the Labour Party, LP, said while the news that one of Nigeria's four state owned refineries-the Port Harcourt Refinery, has finally started production is cheering, it called for greater transparency in the management of our petroleum sector assets.
National Publicity Secretary of the LP, Obiora Ifoh in a telephone interview with Vanguard, in Abuja, yesterday, said: "Before now, we have heard about plans to either sell off all the refineries or rehabilitate them.
"In fact, billions, if not trillions of Naira have been sunk into the almost annual ritual of Turn Around Maintainance (TAM) with little, if anything, to show for it.
"There have been propaganda around when actual production will start. We are taking with the hope that this time around the news about Port-Harcourt starting production isn't another hoax.
"It will be in our collective self interest as a nation, if our refineries which have so far gulped huge amounts of tax payers money begin operations. It will at least have a possitive impact on the price of petroleum products and boost our foreign exchange earnings. Those in government must bring to an end the opacity in the management of our oil resources to earn the confidence of citizens.
"If in the nearest future, government decides to privatize these refineries, we will suggest that it opts for lease instead of outright sell off.
"Public funds spent on it should be accounted for and if possible reimbursed. It would be a good idea if we have open bids held in a transparent manner."
Evolution of refineries
Available records indicate that plans to construct the old Port Harcourt Refinery started in 1963, with 35,000 bpd initial capacity.
It indicated that the refinery was inaugurated in 1965, to refine fuel oil, gas oil, petrol and dual purpose kerosene for local consumption and for export.
The capacity was increased to 60,000 bpd between 1967 and 1970 in order to meet increased demand before the fuel shortages of the 1970s put pressure on the government for further expansion.
It was gathered that with the recommendations of the Oputa Commission, two new refineries were constructed in Kaduna and Warri with 35,000 bpd.
The capacities of the plants were later increased to 110,000 bpd for Kaduna and 125,000 bpd for Warri, while the contract for the construction of the fourth refinery, in Port Harcourt was awarded in 1984 with 150,000 bpd capacity, thus increasing Nigeria's total installed capacity to 445,000 bpd.
However, while some past administrations strived to maintain and optimize the operations of the refineries, others did not, a development that culminated in frequent breakdowns, shortages and massive importation of the petroleum products.
The past administrations also considered leasing, management contract and privatization as possible options while issuing licenses to enable private investors establish new refineries.
