The Port Harcourt Refining Company (PHRC) has once again ceased operations, just weeks after the much-anticipated resumption of production following a $1.5 billion rehabilitation effort. The shutdown, which occurred on December 19, 2024, has raised significant concerns regarding the refinery's operational viability and the future of Nigeria's refining capacity.
The PHRC had resumed production on November 26, 2024, after extensive rehabilitation aimed at modernizing the facility originally built in 1965. Despite initial optimism surrounding its reopening, reports indicate that the refinery has struggled to maintain consistent output due to ongoing technical challenges and infrastructural inadequacies.
Industry insiders reveal that the refinery halted the lifting of Premium Motor Spirit (PMS), commonly known as petrol, on December 13, leading to speculation about the sustainability of its operations. Observations from recent visits to the facility confirm that production has not only slowed but has completely stopped, prompting fears of a repeat of historical patterns where large investments in Nigeria's refineries have yielded minimal returns.
Critics have long questioned the economic wisdom behind investing substantial sums into rehabilitating aging facilities like the PHRC rather than constructing new refineries equipped with modern technology. The persistent issues of corruption, pipeline vandalism, and crude oil theft have further complicated efforts to restore Nigeria's refining capabilities.
Former Group Managing Directors of the Nigerian National Petroleum Company Limited (NNPCL) have expressed mixed feelings about the recent developments. While they acknowledge the scale of work involved in the rehabilitation project, they also emphasize that without addressing systemic issues within Nigeria’s oil sector, including workforce competency and infrastructure reliability, achieving optimal production levels will remain a challenge.