Nigeria’s refineries to resume production next month: official

Nigeria’s four refineries will resume production next month, a spokesman for the state-run oil group said Thursday, raising hope of an end to perennial petrol shortages that have plagued Africa’s largest crude producer.

“The refineries at Warri, Port Harcourt and Kaduna will resume next month after a successful turn-around-maintenance (overhaul) of their facilities,” Ohi Alegbe of the Nigerian National Petroleum Corporation (NNPC) told AFP.

“The turn-around-maintenance has been on for some time. We did not just want to make any noise about it. The refineries will start production as soon as they have delivery of crude oil for refining,” he said.

The NNPC has four refineries — two in Port Harcourt in the south, one in northern Kaduna and another in southern Warri, with a combined installed capacity of 445,000 barrels per day.

A network of pipelines and depots located throughout the country link these refineries.

Nigeria produces a massive two million barrels of crude oil a day, but has to export it due to a lack of working refineries. It then imports fuel back into the country at international market prices — a situation blamed on corruption and mismanagement.

To cushion the blow on the general population, the government sells fuel on the streets at subsidised prices, and makes up for the higher amounts spent by importers by reimbursing them the difference — a system seen as rife with false claims and overpayments.

Last month, a crippling fuel shortage almost grounded Nigeria to a halt, as fuel importers and marketers shut their depots to protest some $1 billion (900 million euros) in unpaid reimbursements.

Black market and legitimate petrol vendors did a brisk trade, selling at around 300 naira ($1.5; 1.3 euros) a litre — well above the officially-set price of 87 naira.

In January 2012, the government tried to end the subsidies, causing petrol prices to more than double. It was ultimately forced to reinstate the payments after tens of thousands of people took to the streets in violent protests that left more than a dozen dead.

Alegbe said the resumption of refinery activity “will significantly improve the supply of petroleum products in the country.”

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  • Asuquo Bassey

    We hope that there will all work to end this corrupt fuel subsidy. Enough is enough. God bless Nigeria

  • El_Komo

    This article should be reviewed to ascertain the exact time the TAM commenced. This is needed for posterity sakes as we do not need history revisionists modifying how events unfolded. It is good to be able to pull out an article, four years down the line and have precise insight into history.

  • john london

    Buhari should not take credit for this oooooi.

    • tony wills.

      True my brother, its Jonathan’s work but there will want to say its Buhari

      • Powerlessconscious

        Who build the refineries? Buhari. Jona is never interested in oil refineries throughout his tenure, that is why he brought up subsidy. Reviving the refineries is never jonothan’s work. Buhari will take the credit.

    • Bishop

      Then, who will take credit for this?. My friend shine your eyes. you thought that something is wrong with this refineries? capital no but the only thing that preventing it from working is corruption. Jona would have been the hero but the strong holds (Cabal) took advantage of Jona gentleness then and cripple the refinery. What matters here is that, who is in-charge when our refineries started working? the answer is Buhari. So we must learn how to make use of opportunity rightly when it comes, because may not come the second time. Though Jona played his own humble role to the development of our democracy very well. If this administration effects change, then the chief actor to that change is Jonathan. God bless Nigeria.

      • Powerlessconscious

        Who built the refineries in Nigeria in 1983/84? Can you answer the question. If you can answer the question, you will know who should take the credit. But the truth is that the builder of the refineries in 1983/84 is the one who want to revive it again.

        • Bishop

          It is Buhari, and nobody is disputing that.

          • ikenna

            it wasnt buhari (mind u am not anti-buhari but we hav to get the records straight) was buhari in power in any of those years to say he as the then president built then? let us stop spreading FALSE claims.

        • ikenna

          u don have ur facts and do not kno wot u r saying, pls!

    • Powerlessconscious

      Who built the refineries ? Buhari. Who want to revive it again? Buhari. Therefore who should take the credit? Buhari.

      • ikenna

        @ Powerlessconscious: how can u say buhari built the refineries and therefore to take credit? do u kno the dates (years), each of those refineries were built? was buhari in power in any of those years to say he as the then president built then? check records b/4 u talk wot u dont kno and spread FALSE information. Have a good day!

      • Ayodele

        Hm, @disqus_zWPb5QyP4C:disqus already mentioned it as did @disqus_if6mMMl7qP:disqus but you can’t give someone credit for something that happened before and well after they were in power.

    • Chima King

      you are the fool of the century

  • emmanuel kalu

    until we seen the refined product coming from this refineries, the turn around would not be complete. what plan do they have to maintain it going forward. it is time the federal govt sell some ownership of this refineries to the average nigeria, so that it is a semi publicly traded company with best international pratice.

  • tony wills.

    It will be thé best thing has ever happened in Nigeria as far as the government is concerned

  • Ifeoluwa

    Dis will bring about an immense change in Nigeria, and I hope it will create MORE JOBS .cos dats going to b a better news for Nigerian youths.

  • Nkemsy

    please lets stop spreading false claims, Buhari did not build any refinery

    In 1965 Shell/BP built Port Harcourt I as a topping and reforming
    refinery with a distillation capacity of 3 million mt/yr (60,000 bpd).
    In 1977 the Nigerian Government partially nationalised the oil industry,
    taking a 60% interest in all operations including the refinery.

    The Vacuum unit and FCC at Port Harcourt II, and the operation of the
    refinery was integrated, and operated under one management.

    Harcourt II was built as a complex refinery with a distillation capacity
    of 7.5 million mt/yr (150,000 bpd). It came on stream in 1989. It ran
    well until 1993 when frequent utility plant failures caused regular
    shutdowns that resulted in equipment damage. The situation deteriorated
    rapidly from 1994 when the military government cut NNPC’s “take” from
    the domestic sales price of oil products from 84% to 22%, causing a cash

    The Warri refinery, located at Warri in Nigeria’s Delta
    State, is a complex refinery with a distillation capacity of 6.3
    million mt/yr (125,000 bpd). The refinery came on stream in 1978. It is
    managed jointly with a petrochemicals plant built in 1986 to produce
    35,000 mt/yr of polypropylene and 18,000 mt/yr of carbon black.

    The refinery crude supply is from the ChevronTexaco Escravos fields
    offshore Warri, and from onshore fields operated by Shell, ChevronTexaco
    and others.

    The Kaduna refinery, in northern Nigeria, is a
    complex refinery with a distillation capacity of 5.5 million mt /yr
    (110,000 bpd). The first 50,000 bpd unit, built in 1980, was a fuels
    unit designed to run light Nigerian crude. It was later revamped to
    60,000bpd by the addition of a pre-flash unit. In 1982, a 50,000 bpd
    sour crude unit was built, designed to provide feed to a lube baseoil
    manufacturing plant, an asphalt plant, and an Linear Alkyl Benzate (LAB)
    plant. The plant was initially designed to run Venezuelan crude, but
    was later re-certified to produce lubes from Arab Light crude.

    1987 the LAB plant was started up. The plant can manufacture 30,000
    mt/year of LAB, 15,000 mt/year of benzene, and 30,000 mt/year of kero
    solvent, but has not operated since 1998. A drum plant was also
    installed, and a 6,000 bpd asphalt blowing unit.

    • Mohammed Jingi Usman

      well my brother i blievw is not intention to say sme bad against buhari but pls marked u all we need is somebody that will make the those refinaries build by ur PAPA to be back on their feet if u like carry the credit and shared within ur family let refine it at home thats all

      • Nkemsy

        For posterity sake, lets maintain our record and history because we have others coming after us, or what information are we
        transferring to those coming after us? or don’t you care about the authenticity of information we disseminate? I posted it solely to set the
        record straight not to insult anyone. We should hold onto our history as a people instead of
        throwing up all sort of false claims. Change can only come if we say the truth.

    • olajaman

      Didn’t see anywhere in the above write-up where it was mentioned that Buhari built a refinery. Dude, stop hating and let’s all pray the country experiences better gorvenance this time around. If things get better, everyone will benefit from it! Hate statements won’t get us anywhere!

      • Nkemsy

        I don’t hate anybody n neither did I use any hate statement, after reading d discussions of others in the forum, I posted it to set the record straight. We should hold onto our history as a people instead of throwing up all sort of false claims, or what information are we transferring to those coming after us? Its in our hands to do the needful. How will change come if within us as a people cannot even say the truth to each other. Change starts from us, not from Buhari, Saraki, Jonathan, APC nor PDP. Its the truth that will set us free. Happy Sunday to all

  • Ayodele

    I said previously that we would soon see the merits of Jona’s administration and got roundly criticised for it. But here you can see I was right. Him and the minister of petroleum may not get the credit for setting this in motion but we ought to recognise the fruits of their success.