Good News! Warri, Port Harcourt Refineries Begin Crude Production – NNPC

The Nigerian National Petroleum Corporation has announced the successful re-streaming of the Port Harcourt and Warri refineries after nine months of phased rehabilitation conducted by its in-house engineers and technicians.

The national oil company made the announcement on Wednesday through a statement.

It said the plants had commenced preliminary production of petroleum products after successful test-runs, noting that while the Port Harcourt Refining Company was ramping up capacity to about 60 per cent of the 210,000 barrels per day of crude capacity, production from the Warri Refining and Petrochemical Company had been projected to hit 80 per cent of its installed capacity 125,000 bpd.

According to the NNPC, the Port Harcourt refinery will have a product yield of five million litres of petrol per day, while the Warri refinery will contribute 3.5 million litres of petrol to the local refining capacity.

Providing insight into the rehabilitation of the plants, the NNPC noted that it had to adopt the phased rehabilitation approach after the original builders of the refineries, who were initially contacted for the turnaround maintenance of the plants, came up with unfavourable terms.

“Though a decision was taken in 2011 to rehabilitate all the refineries using the original refinery builder of each of the refineries, we were impelled to switch strategy after the ORBs declined participation and nominated some partners in their stead, who came up with outrageously unfavourable terms,” it explained.

The corporation stated that the nominated partners, as sole bidders, came up with humongous price offers after two years of thorough and exhaustive scope of work definition and negotiations, adding that the proxies were also unwilling to provide post rehabilitation performance guarantees.

“The phased rehabilitation strategy, which entailed phased and simultaneous rehabilitation of all the refineries using in-house and locally available resources in line with the spirit and letter of the Nigerian Content Law, also involved the use of Original Equipment Manufacturer representatives to effect major equipment overhaul and rehabilitation,” it added.