The Chief Corporate Communications Officer of the Nigeria National Petroleum Corporation Limited (NNPCL), Olufemi Soneye, has shared that the government agency collaborated with an external organization to revitalize the previously defunct Port Harcourt Refinery.
During his remarks on the obstacles encountered in the refurbishment of the ageing facility, Soneye elaborated on the strategy employed.
He indicated that the organization engaged retired NNPC personnel who had extensive experience in refinery operations, leveraging their knowledge and skills.
The incorporation of these seasoned and proficient resources proved to be a pivotal factor in the project’s success, as highlighted by the spokesperson for NNPCL.
“Execution of a revamp project in a brown field environment has a greater technical difficulty, which is multiple times higher than in a green field. Unknown and unforeseen technical challenges impeded the commissioning and startup multiple times and took us back several weeks, hence schedule delays.
“We partnered with and drew on the wealth of experience from an external party who had carried out commissioning and startup, currently operating and maintaining several refineries. The injection of these additional, highly skilled and competent resources was the game changer. We also identified and mobilised retired NNPC staff who had worked in the refineries; their experience and expertise were useful. We carried out a detailed technical review to understand and identify areas of vulnerabilities; we put a system in place to eliminate and address the bad actors systematically,” Soneye told Nigerian Tribune.
Speaking on why there was a delay regarding the commencement date, he said: “You would recall we had made several attempts to start up the PHR about six to seven times with dates. We felt there would be added pressure on the entire team once we announced a date, hence the reason why we made sure, based on lessons of the past, we went mute on the commencement date to allow us sufficient time to ensure operations were stable.”
Addressing controversy about the refining and blending going on at the Port Harcourt Refinery regarding petrol production, he said: “Refining and blending are interconnected processes crucial for crude oil processing and optimizing refinery yields, especially when producing Premium Motor Spirit (PMS).”
Soneye, who was addressing speculations about suspected secrecy and suddenness of the launch of the refinery, said: “There was no secrecy and suddenness of the launch. We had to ensure the OPHR 60kbblpd was stable after the commencement of operation, and we had built up sufficient volumes of the products.”
He added: “Port Harcourt Refinery – and any operating refinery in Nigeria – will contribute to supply security for Nigeria and reduce the dependency on importation and the related USD needed for those imports. Refineries also contribute to technology developments and employment.
“Pricing will always be determined by market forces both inside and outside Nigeria, however, one could expect that using locally produced crude and reduction of imports reduce overall logistics costs.”
Port Harcourt Refinery Operating Model
Speaking on the operating model of the newly launched Refinery, Soneye disclosed that: “Crude oil supply will be purchased from our NNPC Trading Company under sales and purchase agreement. Crude oil transportation will be via pipelines under the tariffing framework. Operations and maintenance (O and M), that is planned turnarounds and reliability engineering, will be outsourced to the external contractor based on a five-year contract. Planning and scheduling, Commercial, Supply Chain and Finance will be under Port Harcourt Refinery Company (PHRC). Product evacuation/offtake will be via NNPC Retail under the purchase agreement.
