The Nigerian National Petroleum Company Limited (NNPCL) has declared its aim to turn the government-owned Port Harcourt oil refinery into a private enterprise as it reopens. The action is a component of an endeavor to improve sustainability and dependability, guaranteeing the effective fulfillment of the country’s fuel supply and energy security responsibilities.

Read also:NNPCL, marketers clash over subsidy, operators peg petrol at N1,200/litre

In a statement released on its website on Monday, the NNPCL revealed its plans to engage reputable and credible operations and maintenance companies for the Port Harcourt Refining Company. The contract scope will encompass various refinery business processes, including long-term and short-term production/operations planning, production and operations execution, monitoring, reporting, optimization of operations, maintenance execution, health and safety, environmental management, minor projects, and more.

Interested companies are required to demonstrate a minimum average annual turnover of at least $2 billion USD for the financial years ending in 2019, 2020, 2021, and 2022.

The rehabilitation work on the Area-5 Plant of the Port Harcourt Refining Company reached mechanical completion on December 21, 2023. The Federal Government confirmed that the first phase of the plant had been completed, with the facility set to refine 60,000 barrels of crude oil daily after the Christmas break. The Port Harcourt Refinery, located in Nigeria’s oil-rich Niger Delta region, has been operational since 1965.

To test-run the facility, the NNPCL commenced the supply of crude oil to the Port Harcourt refinery. The Alesa Eleme refinery complex, situated in Rivers State, Nigeria, approximately 25 kilometers east of Port Harcourt, underwent a significant budget approval in March 2021. The Nigerian government allocated GBP 1.08 billion ($1.5 billion) for the renovation and modernization of the refinery complex.

This strategic move aligns with the government’s broader efforts to enhance efficiency and sustainability in the oil and gas sector, marking a significant step towards fostering private sector participation in the nation’s refining activities. The handover to private operators is anticipated to bring about increased operational efficiency and contribute to the overall growth of Nigeria’s energy sector.