The Nigerian National Petroleum Company (NNPC) Limited has taken a decisive step towards securing long-term viability for the Port Harcourt Refinery complex by engaging a prominent United States-based multinational, Honeywell UOP, to carry out a comprehensive operational assessment of the facility.
This move is a critical phase in attracting credible investors to manage and sustain the refinery under a strategic partnership model.
Honeywell UOP, a global leader in refining technology, is tasked with conducting a technical evaluation to provide potential investors with accurate data on the plant’s current condition, which is essential for informed decision-making.
The engagement confirms NNPC’s strategy to adopt a Technical and Equity (T&E) partnership model for its refineries.
This approach combines private sector expertise with shared ownership, a model successfully utilised at the Nigeria Liquefied Natural Gas (NLNG) plant in Bonny.
The goal is to dramatically improve efficiency, ensure transparency, and restore public confidence in the downstream oil sector, which has been plagued by operational failures for decades.
The context for this assessment is crucial: despite the Nigerian government spending millions of dollars on rehabilitation projects, the nation’s state-owned refineries, including the 210,000 barrels-per-day Port Harcourt complex, have remained largely moribund for years, forcing Nigeria—Africa’s largest oil producer—to rely almost entirely on imported refined petroleum products.
This dependence has led to economic vulnerability and high local fuel prices, particularly following the removal of the fuel subsidy. Although the Port Harcourt Refinery was declared operational late last year following a $1.5 billion rehabilitation, it was subsequently shut down for maintenance just months later, intensifying scepticism from stakeholders like the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
Industry observers and groups like PETROAN have praised NNPC’s Group Chief Executive Officer, Bayo Ojulari, for awarding the assessment contract, arguing that the operationalisation of the refinery will serve as a vital price check mechanism and safeguard against monopoly risks in the downstream sector.
This initiative, therefore, signals a renewed commitment to reducing Nigeria’s import dependence and strengthening energy security by leveraging global technical expertise and private investment.
