Endless refinery repairs: Petroleum products retailers tired of waiting for 445,000bpd

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... Calls on NNPC GMD to appoint managing director of Port Harcourt Refinery

For decades, repair of Nigeria’s four refineries expected to process 505,000 barrels of crude oil per day have been going on with only one with a mere 60,000 bpd (Old Port Harcourt Refinery) has been delivered. The other three refineries in Port Harcourt, Warri, and Kaduna, that hold 445,000bpd have been endlessly ongoing.

Now, the products retailers have cried out, saying they are tired of waiting. A statement issued by Joseph Obele, the national public relations officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) quoted Billy Gillis Harry, the national president as pleading for and end to the wait.

The statement said PETROAN is now compelled to express deep concern over the persistent delays in the completion of the ongoing rehabilitation of the 210,000 barrels per day Port Harcourt Refinery, Warri Refinery (125,000), and Kaduna Refinery (110,000).

The body said despite numerous assurances from the Nigerian National Petroleum Corporation (NNPC) and its officials, the projects have suffered repeated setbacks, with completion deadlines being missed multiple times.

The retailers acknowledged and applauded the commencement of the 60,000 Old Port Harcourt refinery but said they cannot stress enough the urgent need for commissioning, transparency and accountability of the second Port Harcourt Refinery with the capacity of 210,000 barrels per day, the Warri refinery and the Kaduna Refinery.

“PETROAN therefore demands that the NNPC provide a specific and realistic timeline for the completion and commissioning of these refineries, especially the second Port Harcourt

Refinery rehabilitation project. The Second Port Harcourt refinery, when completed, will serve the whole of system 2E, comprising about 13 states.

This will reduce the cost of logistics/transportation of petroleum products from Lagos to the system 2E areas. The current cost of transportation is highly exorbitant and affects the affordability of petroleum products in System 2E areas.”

The group said Nigerians and stakeholders want to know the exact date of delivery of the revamp project.

“We call on the relevant authorities to ensure that the NNPC adheres strictly to the contract timeline, once provided, and maintains regular communication with stakeholders on the project’s progress.

“Given the worrisome nature of these delays and their far-reaching implications for the nation’s economy and welfare, PETROAN calls on President Bola Tinubu to intervene by setting up a high-level facilitating panel.

“This panel should comprise relevants stakeholders, including representatives from NMDPRA, NUPRC, NNPC, NUPENG,

PENGASSAN, MEMAN, DAPPMAN, PETROAN, and other industry experts, to identify bottlenecks, provide solutions, and ensure the project’s timely completion.”

Harry was quoted to have said that the commencement of operations at the three remaining refineries would improve Nigeria’s petroleum sufficiency and positively impact price stability, but lamented over the endless delays.

Read also: PETROAN raises alarm over prolonged Port Harcourt, Warri, Kaduna refinery repairs

He said: “The continuous delay in the completion of the Port Harcourt Refinery rehabilitation project and other refinery projects is unacceptable, and Nigerians deserve to know when the projects will be completed. The huge amount borrowed for the projects should be a serious concern to all citizens, and we will demand accountability for every naira spent on this project.”

PETROAN however commended President Tinubu for appointing Bayo Ojulari as the Group CEO of NNPC, but called on him to save the industry.

“PETROAN notes that the current vacancy in the office of the Managing Director of the Port Harcourt Refinery could be a significant barrier to the project’s progress. We strongly recommend that the Group Chief Executive Officer of NNPC appoint a substantive Managing Director for the Port Harcourt Refinery in the shortest possible time.

“This appointment would provide the necessary leadership and direction to drive the project forward and ensure its timely completion.

The prolonged delay in the refinery’s completion not only undermines the nation’s efforts to achieve self-sufficiency in petroleum products but also exacerbates the economic hardship millions of Nigerians face.

“It is imperative that decisive action is taken to bring this project to fruition without further delay.”



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