Niger Delta Weekly Conflict Update: December 17-23, 2023
December 22, 2023Niger Delta Weekly Conflict Update: January 07-13, 2024
January 12, 2024The Nigerian National Petroleum Company Limited (NNPC Ltd) has said that a test run on the refinery in Port-Harcourt would be completed in January ahead of the full resumption of work later.
Chief Corporate Communication Officer, NNPC Ltd, Olufemi Soneye, disclosed this. He also said that “testing will conclude shortly, ensuring the refinery’s efficient operation.
Despite the NNPC’s announcement in December 2023 about achieving mechanical completion on Area 5 Plant, sources indicate that repair works are still underway. The refinery is expected to commence operations at an initial processing rate of 60,000 barrels per day.
Reports from credible sources suggest that NNPC Ltd is optimistic about reaching its maximum capacity of 210,000 bpd later in the year. The Federal Government approved a $1.5 billion contract in March 2021 for the rehabilitation of the Port-Harcourt refinery, which had been dormant for several years. Italian company Tecnimont SPA was awarded the contract, spanning three phases over 18, 24, and 44 months.
During an inspection tour in December 2023, NNPC Ltd’s Group Chief Executive Officer, Mr. Mele Kyari, revealed that 84.4% of Area 5 Plant and 77.4% of the entire rehabilitation project had been completed.
The Federal Government had also announced the mechanical completion of rehabilitation work on Area-5 Plant, emphasizing that the second phase would be completed in the fourth quarter of 2024. This milestone is expected to lead to the refinery’s increased capacity, refining 150,000 bpd of crude oil.
With the rehabilitation progressing, the government anticipates a reduction in the importation of Liquefied Petroleum Gas (LPG), commonly known as cooking gas. As the refinery gears up to produce refined products, it is poised to contribute significantly to the domestic energy market.
The extensive rehabilitation work at the Port Harcourt refinery, ongoing for over two years, aligns with the NNPCL’s commitment to completing phase one of the project, including mechanical completion and flare start-up, by December 31,2023. The developments signify a significant stride towards enhancing Nigeria’s energy self-sufficiency and reducing reliance on imported petroleum products.