The Port Harcourt Refining Company (PHRC) Ltd in Rivers State has officially commenced crude oil processing, marking a significant development in Nigeria’s energy sector.
This was disclosed by the Chief Corporate Communications Officer of the Nigerian National Petroleum Company Limited (NNPCL), Femi Soneye.
“Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing. This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation,” Soneye announced on Tuesday.
He further commended President Bola Ahmed Tinubu, the NNPC Board, and the leadership of Group Chief Executive Officer Mele Kyari for their dedication to the project. “Hearty congratulations to President Bola Ahmed Tinubu, the NNPC Board, and the exceptional leadership of GCEO Mele Kyari for their unwavering commitment to this transformative project. Together, we are reshaping Nigeria’s energy future!”
Soneye also revealed that truck loading of petroleum products would begin on Tuesday, adding that efforts are underway to revive the Warri Refinery. “NNPCL is working tirelessly to bring the Warri Refinery back online soon,” he stated.
This achievement follows a series of missed deadlines for the refinery’s rehabilitation. The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, had initially promised that the refinery would begin production in September 2023, a deadline later shifted to December. Subsequently, in March 2024, NNPCL’s Group Managing Director, Mele Kyari, projected an April commencement.
During an inspection in August, Kyari emphasized the importance of boosting Nigeria’s refining capacity. “We are focused on delivering this rehabilitation project, our two other refineries, and all other investments towards revamping the nation’s refining capacity,” he said. “We are hopeful that in 2024, this country will be a net exporter of petroleum products.”
The Federal Government had approved $1.5 billion for the refinery’s rehabilitation in 2021, aiming to revive one of Nigeria’s largest refineries, which has been non-operational since 2019.
Despite being a leading crude oil producer, Nigeria has long depended on imported petroleum products due to inadequate local refining. This reliance has led to crude-for-petrol swaps and costly fuel subsidies, draining the nation’s foreign exchange reserves.
In September 2024, the Dangote refinery commenced petrol production, following earlier announcements about its operations. “Dangote Petroleum Refinery has commenced production of diesel and aviation fuel,” the group stated.
With the Port Harcourt Refinery now operational and the Dangote Refinery already producing, Nigerians anticipate relief from the high fuel costs triggered by the removal of subsidies, which saw prices soar from about N200 to over N1,000 per litre.