Toba Owojaiye reporting
Benin City, Edo
The Nigerian National Petroleum Company Limited (NNPCL) has revealed its plan to transfer control of the Port Harcourt Refinery and its operations to private companies. This move is part of the company’s strategy to ensure the efficiency, reliability, and sustainability of the Port Harcourt Refining Company, crucial for meeting the nation’s fuel supply and energy security needs.
Truth Live News gathered that the NNPCL has initiated the process to engage reputable operations and maintenance companies, emphasizing the importance of reliability and sustainability in the nation’s energy landscape.
According to a statement released on its website on Monday, the contract’s scope will cover various refinery business processes, like long-term and short-term production/operations planning, execution, monitoring, reporting, optimization of operations, maintenance execution, health and safety, environmental management, minor projects, and more.
Interested companies applying for this contract must be able to demonstrate a minimum average annual turnover of at least $2 billion USD for the financial years ending in 2019, 2020, 2021, and 2022, respectively.
The NNPCL had earlier initiated the test-run of the Port Harcourt refinery by supplying crude oil to the facility. The Federal Government’s announcement on December 21, 2023, confirmed the mechanical completion of rehabilitation work on the Area-5 Plant of the Port Harcourt Refining Company in Rivers State. The first phase of the plant, capable of refining 60,000 barrels of crude oil daily, is set to commence operations after the Christmas break.
Situated in Nigeria’s oil-rich Niger Delta region, the Port Harcourt Refinery has been operational since 1965. The Alesa Eleme refinery complex, located approximately 25 kilometers east of Port Harcourt in Rivers State, received a significant budgetary allocation of GBP 1.08 billion ($1.5 billion) in March 2021 for renovation and modernization efforts.
This privatization initiative marks a crucial step towards fostering efficiency and innovation in the Nigerian oil and gas sector.
This news brought mixed reactions from netizens. While some were apprehensive and wary of government officials leasing it to their friends and cronies, others said it is long awaited and government should not take any business doing business.