NNPC Announces Port Harcourt Refinery Progress
The Nigerian National Petroleum Corporation (NNPC) revealed that the ongoing test runs at the Port Harcourt refinery, operating at a capacity of 60,000 barrels per day (bpd), are anticipated to conclude by the end of this month.
Significant Milestone in Refinery’s Reopening
According to NNPC spokesperson Femi Soneye, the test run represents a critical phase in the refinery’s journey toward recommencing operations after a five-year hiatus, marking a significant step forward.
Completion of Area-5 Plant Repairs
The recent declaration by the state-owned oil firm highlighted the achievement of mechanical completion in the repair work at the facility’s Area-5 Plant in December, showcasing progress in the refinery’s revitalization process.
Anticipated Operational Phase
Following the Christmas break, the refinery aims to begin processing 60,000 barrels of crude oil per day, marking the conclusion of the first phase of the project.
NNPC’s spokesperson emphasized the imminent completion of testing to ensure the refinery’s efficient operation within the current month, as quoted by Reuters.
Government Confirmation and Economic Impact
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), confirmed the completion of the first phase on December 20, 2023, and anticipated the production of refined goods post-holidays.
The refinery’s operation is anticipated to alleviate pressure on Nigeria’s foreign exchange reserves, alongside the upcoming Dangote Refinery’s oil refining activities slated for this year.
Impact on Product Prices
Experts and downstream operators speculate that while the operation of these refineries could lead to a reduction in the prices of refined products, a significant price collapse may not be imminent, as mentioned in The PUNCH.
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