NNPC Addresses Port Harcourt Refinery Delays Amid Growing Public Discontent

By DAYO ADESULU

Challenges Behind Refinery’s Delayed Completion

The Nigerian National Petroleum Company (NNPC) has provided new insights into why the much-anticipated Port Harcourt Refinery has yet to commence operations, missing its September deadline. NNPC Chief Corporate Communications Officer, Olufemi Soneye, attributed the delays to unforeseen risks and challenges typical of large-scale brownfield projects.

“Mechanical completion was achieved months ago, but commissioning critical equipment and process units revealed unexpected challenges,” Soneye explained. These issues, however, have reportedly been resolved, and the project is back on track, with work ongoing around the clock.

Repeated Deadline Misses Spark Public Frustration

This marks the seventh missed deadline for the refinery’s completion, leaving many Nigerians increasingly disillusioned. Initially expected to ease the burden of high fuel costs by reducing dependence on imported refined products, the refinery’s delays have dampened public optimism.

The facility, one of three government-owned refineries, has remained dormant for years despite multiple promises of rehabilitation. While NNPC refrains from announcing a new completion timeline, officials maintain that progress is being made.

Legal and Transparency Concerns Surrounding the Project

Efforts to uncover the reasons behind the delays have been met with resistance. A Freedom of Information (FOI) request filed by human rights lawyer Femi Falana to Maire Tecnimont SPA, the contractor overseeing the project, was declined.

Maire Tecnimont’s legal counsel argued that the contractor, being a private entity, is not subject to FOI Act requirements. This lack of transparency has further fueled concerns over the project’s accountability.

Timeline of Missed Promises

The refinery, operational since 1965, was slated for modernization under a $1.5 billion rehabilitation project initiated in March 2021. However, since the announcement:

• December 2022: NNPC claimed the project had achieved “mechanical completion.”
• Early 2023: Promises of operational testing and initial production were made but unmet.
• April 2023: Hopes were raised as Shell supplied 475,000 barrels of crude oil, with no significant output following the delivery.
• August 2023: A new deadline was set but missed, marking the sixth postponement.

These delays have fueled skepticism about the NNPC’s ability to meet future deadlines.

Broader Implications for Nigeria’s Energy Sector

The delays in the Port Harcourt Refinery project exacerbate Nigeria’s dependence on imported fuel, maintaining elevated costs for consumers. Additionally, the government’s assurances of becoming a net exporter of petroleum products by year-end now appear far-fetched.

NNPC’s recent announcement of continuing fuel imports highlights the country’s inability to meet local demand through domestic refining, despite substantial investments in rehabilitation.

Public and Expert Reactions

Experts and stakeholders express growing frustration over the stalled project. Many believe that addressing Nigeria’s refining capacity is essential to curbing rising energy costs and reducing economic strain on citizens.

NNPC’s repeated assurances have lost credibility, prompting calls for greater accountability and transparency in the refinery’s rehabilitation process.