The Nigerian National Petroleum Company Limited (NNPCL) has taken a significant step in the energy sector by inviting Expression of Interest (EOI) from qualified oil and gas firms to oversee the operation and maintenance of the Port Harcourt refinery. This move, outlined in a public notice, is geared towards enhancing reliability and sustainability in fuel supply, consequently meeting Nigeria’s energy security needs.
In pursuit of operational efficiency, NNPCL is adopting an “operate and maintain” model, a pivotal requirement set by the lender for the Port Harcourt refinery project. The company’s public notice explicitly conveys the objective, stating, “The Nigerian National Petroleum Company (NNPC) Limited is seeking to engage reputable and credible Operations & Maintenance (O&M) companies to operate and maintain one of its refineries, Port Harcourt Refining Company (PHRC), to ensure reliability and sustainability towards meeting the nation’s fuel supply and energy security obligations.”
The recent milestone was marked by the “mechanical completion” of the 60,000 barrels per day (bpd) segment of the 210,000-capacity plant, after being dormant for several years. It is anticipated that the refinery’s products will enter the market by the end of this month, signifying a significant development in the country’s energy landscape.
Looking back at 2021, NNPCL Group Chief Executive Officer, Mele Kyari, revealed that the Federal Government contemplated transitioning into a minority shareholder in the distressed oil refineries. Subsequently, the Federal Executive Council (FEC) approved a $1.5 billion rehabilitation initiative, primarily financed by Afrexim Bank supplemented by Internally Generated Revenue (IGR) from NNPC. This funding is allocated for the revitalization of the Port Harcourt refining complex, possessing a capacity of 210,000 barrels per day.
In the latest public notice, NNPCL stipulated prerequisites for potential operators and maintainers of the refinery. Among the requirements, companies applying for this role must furnish their audited accounts from 2019 to 2022 and demonstrate a minimum average annual turnover of $2 billion within the same period.
The extensive Port Harcourt refinery rehabilitation project, with an estimated cost of $1.5 billion, encompasses critical phases including engineering, procurement, construction, installation, and commissioning. This comprehensive overhaul signals a concerted effort to fortify Nigeria’s energy infrastructure and revitalize its refining capabilities, thereby consolidating the nation’s position in the global energy landscape.
