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NNPC Moves to Hand Over Port Harcourt Refinery to Private Operators 

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The Nigerian National Petroleum Company Limited (NNPCL) is looking for reputable and credible entities to take over the operation and maintenance of the Port Harcourt Refining Company (PHRC).
Last December, the NNPC Ltd. announced it had achieved the mechanical completion of rehabilitation work on Area 5 Plant of the PHRC.

It explained that rehabilitation work had been ongoing at the Refinery for over two years and the NNPC Ltd. had pledged to complete Phase One of the project (mechanical completion and flare start-up) of Old Port Harcourt Refinery (Area 5) by 31st December 2023.

In a statement published on its website on Monday, the NNPCL stated that prospective companies interested in this opportunity are required to demonstrate a significant financial capability, with a minimum average annual turnover of at least $2 billion USD for the financial years ending 2019, 2020, 2021, and 2022, respectively.
It explained that this requirement was to ensure that the chosen operator has the necessary financial stability and resources to manage the refinery effectively.
The NNPCL stated that the selected company would be responsible for various aspects of refinery business processes, including production and operations planning, execution, health and safety management, environmental management, and overseeing minor projects.
According to the oil company, this strategic move aims to boost the refinery’s reliability and contribute to Nigeria’s fuel supply and energy security.

Kyari, had in 2020, hinted the NNPC would no longer be involved in the management of the nation’s refineries, but would procure the services of a company to manage the plants on an Operations and Maintenance (O & M) basis.

“We are going to get an O&M contract. NNPC won’t run it,” Kyari said, when he appeared as a special guest on an Arise TV programme, The Morning Show.

According to him, this policy direction would come into force upon the completion of the rehabilitation of the refineries.

“We are going to get a firm that will guarantee that this plant would run for some time. We want to try a different model of getting this refinery to run. And we are going to apply this process for the running of the other two refineries,” he added.

The GMD (as he then was), explained that the plan ultimately is to get private partners to invest in the refineries and get them to run on the NLNG model.

He further stated that under the model, shareholders would be free to decide the fate of the refineries going forward.

In preparation for their rehabilitation, Kyari said the shutdown of the refineries has been scheduled.

“Today, after proper scoping, which was not done in the past, we know exactly what to do to get them back on stream.

“The three Nigerian refineries have worked only sporadically due to years of underinvestment. The government has been working to revamp them but has struggled to find external financing to do so.

“Running the refineries has proved costly for Nigeria, as they are decades old and poorly maintained”, he stressed.

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