Port Harcourt Refinery Nears Operational Restart with Test-run Completion Expected This Month

The Nigerian National Petroleum Corporation Limited (NNPC) has disclosed that the test runs at the 60,000-bpd Port Harcourt refinery are set to be completed this month, marking a crucial step towards resuming full operations after being shut down for five years.

"Testing will conclude shortly, ensuring the refinery’s efficient operation. That phase will be completed this month," stated NNPC spokesperson, Femi Soneye, according to Reuters.

The state-owned oil company, NNPC, previously announced the mechanical completion of rehabilitation work on the Area-5 Plant of the facility in December. The first phase of the plant was completed, and it is expected to start refining 60,000 barrels of crude oil daily post the Christmas break.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, affirmed that the first phase of the Port Harcourt Refinery Complex (PHRC) was completed on December 20, 2023. Refined product production is anticipated to commence after the Yuletide season.

Once operational, the Port Harcourt Refinery, coupled with the Dangote Refinery expected to commence oil refining this year, is poised to alleviate the strain on Nigeria's foreign exchange. Despite the potential for reduced costs of refined products, experts and downstream operators suggest that it may not lead to a massive price crash. The focus remains on enhancing domestic refining capacity for a sustainable and self-sufficient energy landscape.