NNPC Admits Port Harcourt Refinery Not Fully Rehabilitated, Calls Early Operations “Ill-Advised”
Port Harcourt — The Nigerian National Petroleum Company Limited (NNPC Ltd) has acknowledged that restarting the Port Harcourt refinery before completing its $1.5 billion rehabilitation was a costly misstep, reversing earlier claims that the plant was operating at 70% capacity.
Group Chief Executive Officer Bayo Ojulari made the admission during a company-wide town hall meeting, describing the decision as “ill-informed and sub-commercial.”
From Celebration to Backtrack
In November 2024, NNPC announced that the 60,000 barrels-per-day refinery had resumed production at 70% capacity, with reports of 200 trucks loaded daily. Government officials hailed the development as a step towards energy independence.
Subsequent industry assessments found only the Crude Distillation Unit (CDU) operational, processing roughly 6,500 barrels per day about 10% of capacity with truck-out figures averaging between four and nineteen trucks daily. Industry veterans, including former refinery MD Alex Ogedegbe, criticised the earlier announcement as misleading.
Strategic Shift, Not Sale
Ojulari clarified that NNPC will not sell the Port Harcourt Refining Company. Instead, the company will prioritise completing the rehabilitation through partnerships with high-grade technical experts. He warned that continued operation under partial rehabilitation risked “further value erosion” and undermined the plant’s long-term viability.
The rehabilitation project, awarded in 2021 to Italy’s Maire Tecnimont, remains incomplete nearly four years on, and proper connectivity between the old and new Port Harcourt refinery assets has not yet been established.
Pattern of Premature Declarations
Analysts note this is not the first instance of premature claims about refinery readiness. In 2023, flaring activity was presented as evidence of operational status but ceased days later. Critics argue such announcements prioritise political optics over technical reality and erode public trust.
Implications for Energy Security
Despite significant rehabilitation spending, Nigeria still imports the bulk of its refined petroleum products. The commissioning of the 650,000 bpd Dangote Refinery has eased supply pressures, but NNPC’s admission highlights vulnerabilities in the country’s domestic refining strategy.
Ojulari’s reference to seeking advanced technical partnerships could signal a move toward deeper collaboration with international technology providers or joint ventures, though no specific deals have been announced.
Call for Transparency
Stakeholders view the admission as a step toward accountability but say it must be followed by clear timelines, measurable performance metrics, and regular progress reports to rebuild public confidence.
As Nigeria navigates global energy transitions and increased scrutiny over governance in oil-producing nations, the Port Harcourt refinery’s rehabilitation will remain a key test of the country’s refining ambitions and institutional credibility.
