By Taiwo Adebowale, Senior Business Correspondent
The Oil Industry in Nigeria Enters a New Era
The Port Harcourt refinery is scheduled to open by the end of July, marking the start of a new era for Nigeria’s oil sector and economy after years of setbacks and broken promises. The National Public Relations Officer of the Independent Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu, confirmed this much awaited event after multiple postponements. With a daily capacity of 210,000 barrels of crude oil processed, the refinery is expected to boost the economy, lower the cost of petroleum products, and guarantee a sufficient supply throughout the country.
Years of Delays and Renewed Hope
The trip thus far has been drawn out and replete with obstacles. The refinery was shut down in March 2019 for significant renovations. It consists of two units: an old plant that can process 60,000 barrels per day and a new facility that can process 150,000 barrels per day. The Italian engineering firm Maire Tecnimont was appointed by the government as the project’s technical adviser, and the large oil corporation Eni also provided important advice.
Heineken Lokpobiri, the Minister of State for Petroleum Resources, declared the refinery’s mechanical completion and flare start-off in December of last year. NNPC Limited’s Group Chief Executive Officer Mele Kyari last promised in mid-March that the refinery would start operating within two weeks, but the actual commencement of operations remained elusive. Many were dubious because this promise was also broken.
A Complete Overhaul, Not Just Rehabilitation
In an exclusive interview, IPMAN’s Chief Ukadike Chinedu emphasized that the recent work on the refinery represented a complete turnaround, rather than mere rehabilitation. “Yes, when we visited the place, the MD told us that the refinery was almost ready and by the end of July, they would start producing. It has been turned into a new one. They changed all the armoured cables to brand new ones, and everything there is almost like a brand-new refinery,” Ukadike said.
He assured that the turnaround maintenance had been extensive, with work being carried out day and night to meet the July deadline. “All hands are on deck to make sure that they meet that target. By the end of July, the refinery should be ready,” he added.
The Effect on the Economy of Nigeria
Nigeria’s economy is predicted to be significantly impacted by the Port Harcourt refinery’s scheduled opening. The commencement of the refinery holds the prospect of a decrease in the cost of petroleum products, which have posed a substantial strain on the Nigerian economy. Premium Motor Spirit (PMS) imports cost Nigeria over N520 billion per month at the moment, or an astounding N6.2 trillion yearly. It is anticipated that local petroleum product production will significantly reduce these expenses.
The operation of the refinery will also guarantee a more consistent and sufficient supply of petroleum products, reducing the recurrent shortages that have afflicted the nation. This stability is crucial for various sectors of the economy, from transportation to manufacturing, which rely heavily on petroleum products.
The Role of Competition in the Market
Ukadike highlighted the importance of competition in driving down prices and improving service delivery. “What we want is competition. I am very sure that with the two refineries, the price of petrol will be reduced. Dangote is coming soon, and the Port Harcourt refinery is almost ready too, and that is very good. We need that competition for the benefit of the nation,” he stated.
The timeline for the Port Harcourt refinery’s launch coincides with the Dangote Refinery’s proposed commencement of petrol production by the end of June. The Dangote Refinery, with a capacity to meet West Africa’s petrol and diesel needs and the continent’s aviation fuel demand, promises to eliminate Nigeria’s dependence on imported petrol.
Regulatory Hurdles and Final Preparations
While the physical work on the Port Harcourt refinery is reportedly complete, the final hurdle remains regulatory approvals. Femi Soneye, Chief Corporate Communications Officer of NNPC Limited, confirmed that the refinery’s operations are awaiting these crucial approvals. “We have said that the mechanical completion has been done and every other thing is done. There is crude oil, and all the pipes are working; we are only waiting for regulatory approvals. Some of our materials and the things we use have to do with nuclear, and we need the nuclear authorities to give us approval to use all those things at the site,” Soneye explained.
He noted that these approvals come from international bodies, and until they are granted, the refinery cannot begin operations. “We are ready to go, but if something happens without it, which would be another issue. Everything has been completed in terms of our work, and once we get those approvals, it will start operations,” he assured.
A New Dawn for Nigeria’s Refining Capacity
An important step forward in Nigeria’s efforts to increase its refining capacity and lessen its reliance on imported petroleum products is the scheduled opening of the Port Harcourt refinery. The thorough reorganisation and the stakeholders’ reaffirmed commitment point to a positive future for Nigeria’s oil industry.
Nigeria is excitedly anticipating the Port Harcourt refinery’s operational start-up, and this development has many advantages. In addition to lowering the price of petroleum goods, a working refinery will boost economic growth, generate jobs, and improve the nation’s energy security.
Conclusion: The Path Ahead
Nigerian refinery operations would be held to a higher standard as a result of the Port Harcourt refinery’s successful functioning. It will show how the nation may update its deteriorating infrastructure and support local production capacities. Nigeria’s oil industry is also about to undergo a revolution with the Dangote Refinery set to open soon.
Nigerians, the government, and interested parties all hope that this time, the promises will materialise into real outcomes, signalling the start of a more economically stable and self-sufficient Nigeria. Everyone will be watching Port Harcourt closely as the end of July draws near in anticipation of the refinery’s first output and the start of a new chapter in Nigeria’s energy history.
Discover more from Atlantic Post
Subscribe to get the latest posts to your email.
You must be logged in to post a comment.