NNPC to Hand Over Port Harcourt Refinery Operations to Private Entities for Revamping

In a significant move aimed at improving Nigeria’s oil refining capacity, the Nigerian National Petroleum Company Limited (NNPC) has decided to transfer the operations of the Port Harcourt Refinery to private entities.

This decision comes as part of the NNPC’s efforts to revamp the country’s refining capabilities and reduce its reliance on imported petroleum products.

The Port Harcourt Refinery, one of Nigeria’s four refineries, has been operating below capacity for several years due to a combination of factors, including aging infrastructure and mismanagement.

The NNPC’s decision to transfer the operations to private entities is expected to bring much-needed investment and expertise to the facility, which could lead to increased production and efficiency.

NNPC’s Group Chief Executive Officer, Mele Kyari, has stated that the company is committed to ensuring that the Port Harcourt Refinery is re-streamed by the end of 2023, with the subsequent streaming of phase 2 in 2024.

The rehabilitation project, which is being undertaken in three phases, is expected to be completed by 2025.

The new Port Harcourt refinery comprises a Crude Distillation Unit (CDU), a Vacuum Distillation Unit (VDU), a Naphtha Hydrotreating Unit (NHTU), a Catalytic Reforming Unit (CRU), a Continuous Catalyst Regeneration (CCR) Unit, a kerosene hydrotreating unit, a fluid catalytic cracking (FCC) unit, and a dimersol unit to convert propylene into a gasoline blendstock.

It also houses a butamer isomerisation unit, an alkylation unit, apart from hydrogen purification, fuel gas vaporiser, sour water, and caustic treatment units.

The old refinery comprises a CDU, a CRU, and a liquefied petroleum gas (LPG) facility. The refinery complex uses four turbo-generators of 14MW an hour of electricity generation capacity each and four boilers.

The NNPC’s decision to transfer the operations of the Port Harcourt Refinery to private entities is a significant step towards improving Nigeria’s refining capabilities and reducing its reliance on imported petroleum products.

It remains to be seen how this move will impact the country’s oil industry and overall economy, but many are optimistic about the potential benefits of increased investment and expertise in the sector.