“Today represents a significant milestone for Nigeria as the Port Harcourt Refinery initiates crude oil processing. This pivotal development heralds a new chapter of energy self-sufficiency and economic advancement for our country,” Soneye stated on Tuesday.
He extended his congratulations to President Bola Ahmed Tinubu, the NNPC Board, and the outstanding leadership of GCEO Mele Kyari for their steadfast dedication to this transformative initiative. “Together, we are redefining Nigeria’s energy landscape!”
Soneye also mentioned that truck loading operations would commence on the same day, emphasizing that the NNPCL is “diligently working to reactivate the Warri Refinery in the near future.”
During a recent inspection of the rehabilitation progress at the PHRC plant in Port Harcourt, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, and his team observed the ongoing work.
The commencement of operations on Tuesday concludes a series of missed deadlines for the refinery's production start in Nigeria’s oil-rich Rivers State. Following his appointment in August 2023, Minister Lokpobiri had initially projected that the Port Harcourt refinery would begin production in September, a timeline that was later postponed to December.
In March of the subsequent year, NNPCL's Group Managing Director, Mele Kyari, indicated that production would start in April. “Our focus remains on successfully completing this rehabilitation project, along with our other refineries and investments aimed at enhancing the nation’s refining capabilities,” Kyari remarked during an inspection of the PHRC rehabilitation efforts in August.
“We are hopeful that in 2024, this country will be a net exporter of petroleum products,” he said.
Three years prior, the Federal Government allocated $1.5 billion (1.2 billion euros) for the refurbishment of a major refinery, which had been inactive since 2019. Despite being one of the largest crude oil producers, Nigeria has historically depended on imported petroleum products due to insufficient local refining capabilities.
The country has exchanged crude oil valued in the billions for subsidized petrol to maintain lower prices for consumers. This reliance on fuel imports and subsidies has significantly strained foreign exchange reserves, particularly during periods of declining oil revenues and currency shortages.
In September 2024, the Dangote refinery announced the commencement of petrol production, shortly after confirming that operations had begun.
“Dangote Petroleum Refinery has commenced production of diesel and aviation fuel,” the group said. “This is a big day for Nigeria. We are delighted to have reached this significant milestone.”
With the Port Harcourt refinery also set to resume operations alongside the already functioning Dangote refinery, there is optimism among Nigerians that these developments will mitigate the effects of the recent fuel subsidy removal, which has driven prices from approximately N200 to over N1,000 per litre.