The Nigerian National Petroleum Corporation (NNPC) in a statement made available to the Guardian newspaper on 29th July informed that both Warri and Port Harcourt plants have commenced preliminary production of petroleum products after successful test-runs. This is following a successful re-streaming after a nine-month phased rehabilitation exercise conducted by its in-house engineers and technicians. While Port Harcourt Refinery Company PHRC, is to ramp up its operation to about 60 percent of its 210, 000 barrels per day name capacity, Warri Refinery Petroleum Company WRPC, production is projected to hit 80 percent of its installed capacity of 125, 000 bpd.
The anticipation is that Port Harcourt Refinery will eventually boost the nation’s local refining capacity with a product yield of 5million litres of petrol per day while Warri Refinery Petroleum Company would contribute 3.5 million litres of petrol to local refining capacity.
The Corporation stated that the phased rehabilitation programme, started in October 2014 after the required funding stream was established.
The NNPC noted that it had to adopt the phased rehabilitation strategy after the Original Refinery Builders (ORB) who were initially contacted for the project came up with unfavorable terms. The organization was then forced to look inward to its in-house engineers and technicians. This act extenuated the financing challenges of refinery rehabilitation and created a 70 percent reduction in costs.
“Though a decision was taken in 2011 to rehabilitate all the refineries using the Original Refinery Builders (ORB) of each of the refineries, we were impelled to switch strategy after the ORBs declined participation and nominated some partners in their stead who came up with outrageously unfavorable terms,” the statement added.
The proxies were also unwilling to provide post rehabilitation performance guarantees even with ‘outrageous’ billing.
The rehabilitation of both refineries was done using in-house and locally available resources in line with the spirit and letter of the Nigerian Content Law, and the use of Original Equipment Manufacturer representatives to effect major equipment overhaul and rehabilitation.
The Corporation also stated that with the successful re-streaming of the PHRC and WRPC, Kaduna Refining and Petrochemicals Company will get the same treatment.