After years of anticipation, the Port Harcourt refinery has commenced production, marking a significant milestone in Nigeria’s efforts to boost local fuel processing and reduce import dependency.
The Port Harcourt Refining Company (PHRC) Ltd, located in Rivers State, has started processing crude oil.
This information was provided by Femi Soneye, the Chief Corporate Communications Officer at the Nigerian National Petroleum Company Limited (NNPCL).
“Tuesday witnessed a momentous occasion for Nigeria with the official start of crude oil processing at the Port Harcourt Refinery. According to Soneye, this significant milestone heralds a new chapter of energy independence and economic advancement for our country.”
Warm congratulations to President Bola Ahmed Tinubu, the NNPC Board, and the outstanding leadership of GCEO Mele Kyari for their steadfast dedication to this transformative project. Together, we are redefining Nigeria’s energy future!
Soneye announced that truck loading is set to begin on Tuesday (today), and mentioned that the NNPCL is “working tirelessly to bring the Warri Refinery back online soon.”
Tuesday’s action concludes a string of missed deadlines for starting production at the refinery in Nigeria’s oil-rich Rivers State.
When Heineken Lokpobiri assumed office as the Minister of State for Petroleum Resources (Oil) in August 2023, he announced that the Port Harcourt refinery was scheduled to begin production in September. However, this timeline was subsequently pushed back to December of the same year.
In March of the next year, Mele Kyari, the Group Managing Director of NNPCL, announced that the refinery would commence production in April.
“We are committed to completing this rehabilitation project, along with our two additional refineries and all other investments aimed at enhancing the nation’s refining capacity,” Kyari stated in August during his visit to inspect the rehabilitation efforts at Port Harcourt Refining Company (PHRC) Ltd.
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He expressed optimism that in 2024, the country would become a net exporter of petroleum products.
Three years ago, the Federal Government authorized $1.5 billion (1.2 billion euros) for repairs on one of the nation’s largest refineries, which has been closed since 2019.
Although Nigeria is among the largest producers of crude oil, it has historically depended on importing petroleum products due to insufficient local refining capacity.
Nigeria exchanges crude oil valued at billions of dollars for petrol, which it had subsidized for years to maintain low prices in its domestic market. Fuel imports and subsidies significantly depleted foreign exchange reserves while Nigeria faced declining oil revenues and shortages of foreign currency.
However, in September 2024, the Dangote refinery commenced petrol production, several months after announcing that the plant was operational.
The Dangote Petroleum Refinery has begun producing diesel and aviation fuel, according to the group. They stated, “This is a monumental day for Nigeria, and we are thrilled to have achieved this important milestone.”
With the Port Harcourt refinery starting operations and the Dangote refinery already in production, Nigerians anticipate that these developments will help mitigate the effects of removing fuel subsidies. This removal had previously increased fuel prices from approximately N200 to over N1,000 per liter.
