The Nigerian National Petroleum Corporation (NNPC) has said that the Port Harcourt (PHRC) and Warri (WRPC) refineries have commenced preliminary production of petroleum products.
The corporation made this known in a statement issued in Abuja on Wednesday by its Group General Manager, Group Public Affairs, Mr Ohi Alegbe.
The statement explained that the commencement of petroleum products production followed successful test-runs after a successful re-streaming in a phased rehabilitation by its in-house engineers and technicians which lasted 9 months.
It said that PHRC was pushing up its operation to about 60 per cent of its 210,000 barrels per day name plate capacity, while WRPC production is projected to hit 80 per cent of its installed 125,000 bpd capacity.
The statement further said that PHRC was projected to boost the nation’s local refining capacity with a product yield of five million litres of petrol per day, while WRPC would contribute 3.5 million litres of petrol to local refining capacity.
Alegbe added in the statement that NNPC adopted the phased rehabilitation after the Original Refinery Builders (ORB), who were initially contacted for the project, came up with unfavorable terms.
He said: “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 phased rehabilitation strategy entailed phased and simultaneous rehabilitation of all refineries using in-house and locally available resources in line with the spirit and letter of the Nigerian Content Law.
“It also involved the use of Original Equipment Manufacturer representatives to effect major equipment overhaul and rehabilitation.’’
The statement noted 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.
“With the successful re-streaming of the PHRC and WRPC, attention has moved to the 110,000 barrels per day Kaduna Refining and Petrochemicals Company (KRPC), which is billed to come on stream soon,’’ it added.