The Port Harcourt Refining Company in Rivers State has restarted its operations, marking a significant development after years of inactivity and turnaround maintenance of the facility. This move aligns with the Federal Government’s commitment to ensure the production of refined products at the facility by December 2023.
The recommencement comes after several years of underperformance and turnaround maintenance efforts at the facility. Nigeria’s four refineries in Port Harcourt, Warri, and Kaduna, with a combined capacity of processing 445,000 barrels per day (bpd), were shut down in 2019.
In August, Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), announced during an inspection tour that the Port Harcourt Refinery would resume operations by the end of the year. The refinery’s revival follows the Federal Government’s approval of $1.5 billion for the repair of one of its largest oil refineries.
Italian firm Maire Tecnimont was selected to execute the repair work at the Port Harcourt facility, with a capacity of around 210,000 bpd. The rehabilitation process was planned to be carried out in three phases, with the first phase aiming to reach 90% of its nameplate capacity in 18 months.
Despite being Africa’s leading oil producer, Nigeria has faced fuel shortages due to a lack of domestic refining capacity, leading to reliance on petroleum product imports. The resumption of operations at the Port Harcourt refinery, along with ongoing efforts at the Dangote Refinery, is expected to enhance fuel supply in Nigeria, reducing the need for imports and potentially impacting fuel costs, especially with the removal of fuel subsidies.