Port Harcourt refinery shuts down again after $1.5bn rehabilitation

Less than a month after its much-anticipated reopening, the Port Harcourt Refining Company has halted operations once again.

On Thursday, December 19, 2024, our correspondent visited the facility and observed that the lifting of Premium Motor Spirit (PMS), commonly known as petrol, had come to a standstill. 

Sources familiar with the situation revealed that petrol lifting had ceased as early as Friday, December 13, with the refinery’s 18-arm loading bay completely empty.

The usually busy depot, known for its hustle and bustle with tankers queuing up to load products, appeared eerily quiet, with only a few trucks parked around the yard. Nine trucks were seen inside the parking area, while 18 others lined up along the road leading to the refinery.

This development comes less than a month after the refinery’s official reopening following a $1.5bn rehabilitation, which was celebrated as a major milestone for the country’s oil sector. 

The refinery, which has a capacity to produce 60,000 barrels per day, was reopened by Mele Kyari, CEO of the Nigerian National Petroleum Company Limited (NNPC), on November 26, 2024. 

During the event, there were claims of petrol being loaded, but reports suggest that only a few trucks, far fewer than the 200 initially claimed, were actually dispatched.

After the reopening, operations seemed to have returned to their old ways, with allegations surfacing that the petrol loaded during the event was old stock from the facility’s storage tanks.

A visit to the refinery three weeks ago confirmed that no significant operations were taking place, and sources within the Petroleum Products Retail Outlets Owners Association of Nigeria explained that operations had been scaled down for the calibration of meters at the loading bay and the emptying of old stock. 

Tanker drivers resumed operations shortly after, and journalists were granted a tour of the refurbished plant, where its Managing Director, Ibrahim Onoja, spoke of the extensive upgrades carried out on the facility.

“We have carried out an extensive revamp of this plant and changed most of the equipment,” Onoja said, highlighting the installation of new pumps, cables, and other essential machinery. 

As a result, there was a brief improvement in operations, with about 11 trucks loading products at one point.

However, on Thursday, December 19, reports confirmed that the refinery had once again halted production. 

Tanker drivers were seen idling in their trucks, with one driver mentioning that he had been told lifting would resume on Monday, although he expressed doubt over the accuracy of the information. 

Security personnel outnumbered workers and visitors, and the loading bay remained deserted.

Truck drivers reported that the last shipment of petrol took place on Friday, December 13, with only around 15 trucks loading that day. Since then, no further lifting has occurred, leaving many drivers frustrated and uncertain about when operations will resume.

Petroleum product marketer Mr Dappa Jubobaraye criticised the state of the refinery, alleging that the recent reopening was a mere show for the public. 

According to Jubobaraye, the refinery’s loading meters had not been calibrated before the operation began, and only three out of 18 loading arms were functioning, with significant leakages in the system. 

He claimed that only a few trucks had been loaded to create the illusion of activity, but the reality was that the refinery was not operational.

“It’s all a deception. They want to make it seem like the refinery is working when it is not,” he stated. 

He also pointed out that while loading operations were restricted to PMS, other products like kerosene and diesel, which are vital to ordinary Nigerians, had yet to be addressed.

Jubobaraye’s criticism was echoed by other stakeholders who questioned the NNPC’s commitment to ensuring that the refinery functions as intended. Efforts to reach NNPC spokesperson Femi Soneye for comment were unsuccessful, as he did not respond to calls or text messages at the time of writing.

With the refinery now inoperative once again, many are left questioning whether the significant investment in rehabilitation will ever result in meaningful and sustainable production, or if the recent reopening was simply a temporary attempt to show progress in an otherwise struggling sector.

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