NNPC reacts to reports on Port Harcourt Refinery’s shutdown after $1.5bn repair
Reports in Nigeria have indicated that the Port Harcourt Refining Company, located in Rivers State, has once again ceased operations shortly after a much-publicized reopening.
This shutdown occurred just weeks after the refinery was celebrated for resuming production following an approximately $1.5 billion rehabilitation effort that aimed to restore its functionality and increase its output capacity.
But, the the Nigerian National Petroleum Company Limited (NNPC) on Saturday denied the reports, claiming that the refinery is in good shape, though Nigerians have reacted to NNPC’s rebuttal with skepticism.
On December 13, 2024, the refinery halted the distribution petrol. Observations made during a visit to the facility on December 19 revealed that the loading area, which typically buzzes with activity as trucks fill up with fuel, was completely empty.
Reports indicated that while several trucks were parked nearby—18 along the main road and 9 in the parking area—none were being loaded with petrol. The atmosphere at the depot was notably quiet, lacking both vehicular movement and personnel typically involved in operations.
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The refinery had been reopened on November 26, 2024, by Mele Kyari, CEO of the NNPCL. This event was marked by celebrations and initial loading of petrol into trucks; however, it later emerged that only about 10 trucks were filled with fuel that day instead of the claimed 200. Furthermore, there are indications that some of this fuel may have originated from older supplies rather than newly refined products.
Following this brief period of activity where some trucks resumed loading fuel, operations came to a complete halt again within just a few weeks. The NNPC has not disclosed specific reasons for this latest shutdown but has hinted at ongoing technical issues and additional maintenance needs that were not adequately addressed during the recent rehabilitation.
The repeated closures raise significant concerns regarding the effectiveness of the rehabilitation efforts and highlight broader systemic issues within Nigeria’s oil refining sector. Despite having a nameplate capacity of 210,000 barrels per day, Port Harcourt Refinery has struggled to operate efficiently for years due to aging infrastructure and inadequate maintenance practices.
Experts suggest that without substantial investment in new refining facilities and comprehensive reforms in management practices within Nigeria’s downstream oil sector, reliance on imported petroleum products will continue to grow. This situation could lead to further increases in domestic fuel prices and exacerbate existing economic challenges faced by Nigerians.
