Port Harcourt, Warri Refineries Commence Preliminary Production | Independent Newspapers Limited
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Port Harcourt, Warri Refineries Commence Preliminary Production

Posted: Jul 30, 2015 at 1:35 am   /   by   /   comments (0)

By Oladunjoye Phillip, Lagos


The Management of the Nigerian National Petroleum Corporation (NNPC) has announced that the Port Harcourt and Warri refineries have been successfully re-streamed after a nine-month phased rehabilitation exercise conducted by its in-house engineers and technicians.

The Corporation in a statement said that both plants have commenced preliminary production of petroleum products after successful test-runs, noting that while Port Harcourt Refinery is ramping up its operation to about 60 percent of its 210, 000 barrels per day name plate capacity, Warri Refinery’s production is projected to hit 80 percent of its installed 125, 000 bpd capacity.

The NNPC informed that the Port Harcourt Refinery is projected to boost the nation’s local refining capacity with a product yield of 5 million litres of petrol per day while Warri Refinery would contribute 3.5 million litres of petrol to local refining capacity.

Providing insight into the rehabilitation exercise, 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.

“Though a decision was taken in 2011 to rehabilitate all the refineries using the 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 corporation said.

The NNPC stated that the nominated partners, as sole-bidders came up with humongous price offers after two years of thorough and exhaustive scope of work definition and price negotiations, while the proxies, it explained, were also unwilling to provide post rehabilitation performance guarantees.

“The phased rehabilitation strategy which entailed phased and simultaneous rehabilitation of all the refineries using in-house and locally available resources in line with the spirit and letter of the Nigerian Content Law, also involved the use of Original Equipment Manufacturer representatives to effect major equipment overhaul and rehabilitation.”