Port Harcourt refinery to resume operations by December -FG

*We’re committed to ending fuel importation, says Minister The Federal Government has reiterated its commitment to ending petroleum product importation soon, as efforts are being redoubled to restore the nation’s local refining capacity. According to a statement on hits X handle, Chief Corporate Communications Officer NNPC Ltd. Garba Deen Muhammad, said the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, made this known during an inspection tour of the rehabilitation work progress at the Port Harcourt Refining Company (PHRC) Ltd. plant, in Port Harcourt on Friday. The Minister, who was in the company of his counterpart, the Minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo; Permanent Secretary, Federal Ministry of Petroleum Resources, Ambassador Gabriel T. Aduda, and the Group CEO, NNPC Ltd., Mr. Mele Kyari, said considering the level of progress recorded in the PHRC rehabilitation project, the plant will come back on stream by December this year. “Our objective in coming here today is to ensure that in the next few years, Nigeria stops fuel importation. From what we have seen here today, Port Harcourt Refinery will come on board by the end of the year, Warri will come on stream by the end of the first quarter of next year, and Kaduna will also come on board towards the end of next year. If you add that to the Dangote Refinery, we will be able to stop fuel importation, and Nigerians will enjoy the full benefits of deregulation,” the Minister assured. The Minister also said he was satisfied with the ongoing rehabilitation work at the Port Harcourt refinery, noting that once all the refineries are back on stream, Nigerians will enjoy a better supply of petroleum products, and foreign exchange will be domesticated, leading to an improved economy. Earlier in his remarks, the Group CEO, NNPC Ltd., Mr. Mele Kyari, said bringing back the refineries to their optimal levels is a national aspiration, and the Company remains focused on delivering that. “We are aware of our nation’s challenges in terms of fuel supply. But we are not here to give excuses. We are focused on delivering this rehabilitation project, our two other refineries, and all other investments towards revamping the nation’s refining capacity. We are hopeful that in 2024, this country will be a net exporter of petroleum products,” Kyari stated. Also speaking, the Minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo said: “We are here to go into the field. Yesterday was the era of subsidies. Today, we don’t have subsidies. Today, people are in a desperate situation to heave a sigh of relief; and see how to live. You all know that petrol is very vital to our economy. All hands must be on deck to ensure that the refineries are working,” he stated. During the visit, the two Ministers also participated in the Refineries’ Rehabilitation Steering Committee meeting and held a meeting with the refinery’s Engineering, Procurement & Construction (EPC) Contractors.

Nigeria crude exports to rise as Shell Forcados resumes operations

Nigeria’s contribution to the Organisation of Petroleum Exporting Countries (OPEC) is expected to increase with the resumption of the Forcados grade of crude oil Sunday. The resumption is coming roughly a month after loadings of the medium sweet grade were suspended because of a potential leak at the export terminal. Sources had told Reuters that exports of the grade, which was scheduled to ship 220,000 barrels per day (bpd) in July, were halted on the evening of July 12 after workers saw fumes near a single buoy mooring where oil was being loaded onto a vessel. A single buoy mooring is essentially a floating loading facility that allows large tankers to moor offshore to discharge cargoes. Shell confirmed that injections into the terminal had been curtailed after the report, though no force majeure was declared. The Shell said the cause of the suspension would be determined by a joint investigation between company and community representatives in tandem with government agencies. The suspension of Forcados loadings contributed to Nigeria becoming the second-biggest contributor to the drop in OPEC crude oil output in July, a Reuters survey showed. This follows observation by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC that the country’s crude oil production dropped by 12.56 per cent in July to 1.29 million barrels daily from 1.48 million barrels daily in June. According to the NUPRC, one of the reasons for the decline was the temporary shutdown of the Forcados terminal, which Shell, the operator, said in mid-July on suspicions of a leak. The Forcados sees loadings of an average of 220,000 barrels daily but on July 12 workers in the area saw fumes near a vessel that was being loaded with crude. The repairs work on the terminal was expected to be completed by the end of the first week of August but as of the middle of this week, Forcados remained shutdown. Earlier this year, the Commission warned that Nigeria is producing one million bpd of crude less than it has the capacity to produce. The agency cited a lack of investments, a shortage of funding sources because of the energy transition, and insecurity among the factors driving the situation. “Currently, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day. However, arising from the highlighted challenges, our current production hovers around 1.5 million barrels of oil and condensate per day,” the chief executive of the body said in May. To remedy matters, Nigeria earlier this month announced the pending launch of a roadshow to pitch upstream investments in the country. “Whereas the global imperatives for energy transition is clear and justified, the need for Africa’s energy security, economic development and prosperity cannot be overemphasised,” the Nigerian regulator, which is organizing the roadshow, said. According to a senior Petroleum Ministry official, Nigeria is looking to boost its oil production to 1.7 million barrels daily by November this year.