By Picnews
The Nigerian National Petroleum Company (NNPC) has initiated a comprehensive technical and commercial review of its three major refineries in Warri, Port Harcourt, and Kaduna. This review aims to assess the refineries’ operational and financial viability, determining whether to high-grade or repurpose the facilities for optimal performance and sustainability. The NNPC’s goal is to enhance energy security, optimize its assets, and ensure compliance with the Petroleum Industry Act (PIA) requirements.
By engaging advanced technical equity partners with a proven track record of operating refineries to international standards, the NNPC aims to improve the refineries’ efficiency and productivity, increase domestic fuel production, and reduce dependence on imported petroleum products. This move is expected to strengthen national energy resilience and have a positive impact on the country’s economy.
The Warri, Port Harcourt, and Kaduna refineries have a combined nameplate capacity of about 445,000 barrels per day. However, none have produced refined fuel at a commercial scale in over a decade due to various challenges, including mechanical faults, obsolete infrastructure, and funding constraints. The review’s outcome will inform key decisions on technology upgrades, operational models, and commercial frameworks.
Possible scenarios include high-grading the refineries to transform them into modern, efficient plants or repurposing one or more refineries for petrochemical or modular operations. Engaging technical equity partners will be crucial in enhancing efficiency and productivity. The success of this initiative will depend on credible partnerships, technological innovation, robust financial planning, and political will.
If successful, the combined output from rehabilitated NNPC refineries and private facilities could finally close Nigeria’s domestic refining gap. This would reduce the country’s reliance on imported petroleum products, save foreign exchange, and boost the local economy. The review is expected to be completed soon, and its outcome will have significant implications for Nigeria’s energy sector.
The NNPC’s efforts to revitalize its refineries are part of a broader strategy to improve the country’s energy infrastructure and promote economic growth. The success of this initiative will be closely watched by stakeholders, including industry experts, investors, and the general public.
