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Business Insider
24-05-2025
- Business
- Business Insider
Nigeria's national oil company announces shutdown of state-owned refinery
The Nigerian National Petroleum Company Limited (NNPC Ltd), in its caretaker capacity, has announced the immediate shutdown of operations at the Port Harcourt Refining Company (PHRC) due to a scheduled maintenance exercise commencing today, May 24, 2025. NNPC Ltd announced the temporary shutdown of Port Harcourt Refinery for scheduled maintenance starting May 24, 2025. The maintenance aims to enhance efficiency, ensure sustainability, and reduce reliance on fuel imports. The shutdown raises concerns about persistent issues in Nigeria's refining infrastructure and performance. The shutdown was announced in a statement issued on Saturday by Femi Soneye, Chief Corporate Communications Officer, who stated that the closure is temporary and intended to enhance the refinery's efficiency and ensure its long-term viability. The statement read: 'The Nigerian National Petroleum Company Limited (NNPC Ltd) wishes to inform the general public that the Port Harcourt Refining Company (PHRC) will undergo a planned maintenance shutdown." 'This scheduled maintenance and sustainability assessment will commence on May 24, 2025.' Soneye added. According to NNPC Ltd, the maintenance operation will be conducted in coordination with relevant agencies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to ensure transparency and technical precision throughout the process. 'We are working closely with all relevant stakeholders to ensure the maintenance and assessment activities are carried out efficiently and transparently, ' Soneye said. NNPC Ltd reaffirmed its commitment to enhancing energy infrastructure and ensuring sustainable energy security for Nigerians. The company noted that the maintenance exercise is part of its broader efforts to boost national refining capacity and reduce reliance on fuel imports. It also pledged to keep the public informed through regular updates on its official website and media channels during the maintenance period, and to implement measures to mitigate any potential disruptions to affected parties. Nigeria's refinery challenges However, this latest shutdown comes amid fresh scrutiny of PHRC's inconsistent performance, with concerns over transparency and accountability. The facility has been burdened by years of underperformance, failed upgrade plans, and rehabilitation setbacks; despite several rounds of funding and government guarantees. Just last month, NNPC Ltd dismissed PHRC's Managing Director, citing internal investigation reports and accountability issues, project delays, and alleged mismanagement of rehabilitation funds. Although today's maintenance announcement is seen as essential upkeep to maintain and improve production, critics argue it highlights deeper flaws in Nigeria's refining strategy, particularly at Port Harcourt Refinery, which remains unable to achieve steady production despite years of major overhaul efforts.
Business Insider
29-04-2025
- Business
- Business Insider
Concerns mount as Nigerian refinery shuts down after $897.6m in maintenance funding
The recent shutdown of the Warri refinery barely a month after being declared operational, has sparked growing concerns over the transparency and efficiency of Nigeria's refinery management. According to a document from the Nigerian Midstream and Downstream Petroleum Regulatory Authority obtained by The Punch, the refinery, which absorbed $897.6 million in maintenance costs, failed to produce Premium Motor Spirit (petrol) and was shut down just a month after former NNPC Group CEO Mele Kyari declared it operational. Industry operators and experts have expressed disappointment over the situation. Further findings revealed that the Port Harcourt Refining Company, which resumed operations in November 2024, is operating at less than 40% of its capacity. Despite substantial investments and rehabilitation initiatives, these refineries continue to face operational challenges that hinder their full functionality. The refinery, commissioned in 1978, was designed to supply markets in Nigeria's southern and southwestern regions. Its petrochemical plant has a capacity of 13,000 metric tons of polypropylene and 18,000 metric tons of carbon black annually. Despite receiving $897.6 million in maintenance funding, the refinery ceased operations on January 25, 2025, due to safety issues in its Crude Distillation Unit Main Heater—raising fresh doubts about oversight and performance under the Nigerian National Petroleum Company Limited (NNPCL). Revamp efforts hit wall Nigeria's government-owned refineries have long been plagued by neglect, mismanagement, and corruption—persistent symptoms of the country's troubled oil sector. Despite renewed efforts to rehabilitate the Port Harcourt, Warri, and Kaduna refineries in a bid to reduce dependence on imported petroleum products and boost domestic refining capacity, progress remains slow and uneven. Hopes were briefly rekindled when private sector investments, particularly the Dangote Refinery, emerged as potential game changers for Africa's top oil producer, which has relied on imported fuel for decades. Despite initial optimism, recent developments cast doubt on the government's seriousness in revamping its moribund refineries. According to the NMDPRA document obtained by The Punch, the Warri Refining and Petrochemical Company was shut down on January 25, 2025, due to safety concerns with its Crude Distillation Unit (CDU) Main Heater—barely a month after being declared operational. Meanwhile, the Port Harcourt Refinery, which resumed operations in November 2024, is operating at just 37.87 percent of its installed capacity, far below the 70 percent claimed by NNPC spokesperson Femi Soneye. The refinery, with a nameplate capacity of 60,000 barrels per day, produced an average of 82.55 million litres of refined products monthly between November 2024 and April 2025—about 135.45 million litres short of its optimal output of 218 million litres. These figures sharply contradict NNPC's projections at the plant's recommissioning, where the firm claimed the facility would deliver daily outputs of 1.4 million litres of Straight-Run Gasoline for blending into Premium Motor Spirit (PMS), 900,000 litres of kerosene, 1.5 million litres of diesel, and significant quantities of LPG and jet fuel.
