The Nigerian National Petroleum Commission has explained the delay in the Port Harcourt Refinery project, which missed its September completion deadline.
In an interview on Monday, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, cited risks and challenges associated with the rehabilitation of the refinery, describing it as a brownfield project.
He added that the commissioning of critical equipment and processing units began after mechanical completion in Nigeria.
“You may recall that mechanical completion of the PHRC revamp was successfully achieved several months ago, marking a significant milestone in the project. Following this, we began the commissioning of critical equipment and process units.
“However, as is common with brownfield projects of this scale and complexity, we encountered unforeseen risks and challenges,” he stated.
Soneye noted that the issues delaying the Port Harcourt Refinery project have been resolved, and commissioning activities have resumed.
He emphasised that efforts are ongoing to ensure the project’s completion.
“These issues have since been effectively resolved, and commissioning activities have resumed.
“Work is being carried out around the clock to ensure the successful completion of this critical project,” he said.
When asked about a timeline for the completion of the Port Harcourt Refinery project, Olufemi Soneye simply responded, “Shortly.”
It was observed that the NNPC has refrained from setting new deadlines for the Port Harcourt Refinery’s completion after missing seven previous targets.
The refinery, one of three owned by the Federal Government and managed by the NNPC, has raised hopes among Nigerians that domestic refining could lower fuel costs and reduce reliance on imports.
However, the NNPC stated last week that it would continue importing fuel, clarifying that it is not the sole off-taker of petrol from the Dangote Refinery.
In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery, but the contractor handling the project has yet to announce its completion.
Findings shows that promises made by the Federal Ministry of Petroleum Resources and the NNPC regarding the Port Harcourt Refinery have repeatedly failed to materialize, raising concerns among Nigerians about the project’s long-standing delays.
After the failure of the sixth deadline in early August, the then Chief Financial Officer of the NNPC, Umar Ajiya, said the refinery would commence operations in September 2024.
However, September ended without a word from the NNPC about the refinery, and Nigerians have been left in the dark since almost two months ago.
The contractor handling the Port Harcourt Refinery rehabilitation, Maire Tecnimont SPA, declined to disclose the project’s completion date despite a formal request by human rights lawyer, Femi Falana.
Falana, concerned about the persistent delays, had filed an official Freedom of Information Act request seeking clarity on the timeline for the refinery’s completion.
In early October, Maire Tecnimont’s legal representative, Muyiwa Ogungbenro of Olajide Oyewole LLP, responded to Femi Falana’s Freedom of Information Act request.
In the letter, Ogungbenro declined to disclose the refinery’s completion date, stating that Maire Tecnimont, as an independent private contractor, is not obligated to provide such information under the FOI Act.
“We are counsel to Maire Tecnimont SpA, and we have our client’s instruction to respond to your letters dated 17 and 24 September 2024 requesting information on the contract between our client and Nigerian National Petroleum Company Ltd.
“Our client is a private company. Being a private independent contractor, our client is not a company in which any government has a controlling interest, and does not provide public services, functions or utilising public funds for them to be bound by the obligations in the Freedom of Information Act.
““On this ground, our client regrettably cannot provide the information you have requested,” Ogungbenro declared.
Since December 2023, the NNPC has repeatedly provided various timelines, assuring Nigerians that the Port Harcourt Refinery would soon begin selling refined products following its mechanical completion.
However, updates about the refinery’s progress have since been withheld, leaving the public—who hope for cheaper petrol through local refining—in uncertainty.
