NNPC engages U.S. tech giant to assess Port Harcourt refinery amid revival push
Port Harcourt, Rivers – In a significant move toward revitalizing Nigeria's aging petroleum infrastructure, the Nigerian National Petroleum Company (NNPC) Limited has enlisted Honeywell UOP, a renowned U.S.-based multinational, to conduct a comprehensive evaluation of the Port Harcourt Refinery.
The assessment, aimed at paving the way for potential private investments, was announced by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) in a statement released over the weekend.
PETROAN, a key industry body representing retail fuel outlet owners, described the engagement as a "strategic step" toward restoring the refinery's functionality, which has been plagued by years of underperformance and maintenance challenges.
The refinery, located in Rivers State and with a capacity of 210,000 barrels per day, was shut down for routine maintenance in May 2025 but has yet to resume full operations despite a $1.5 billion rehabilitation effort earlier this year.
The facility's prolonged downtime has contributed to Nigeria's heavy reliance on fuel imports, costing the economy an estimated $9.6 billion annually.
According to Joseph Obele, PETROAN's National Publicity Secretary, the contract awarded to Honeywell UOP—formerly UOP LLC—will provide critical insights into the plant's operational state, enabling informed decisions by prospective investors.
Honeywell UOP specializes in advanced technologies for petroleum refining, gas processing, and petrochemical production, making it a trusted partner for such high-stakes audits.
"This development signals a positive step towards restoring the refinery’s functionality," Obele stated, emphasizing the firm's global expertise in delivering solutions to major manufacturing industries.
The initiative aligns with NNPC's broader strategy to adopt a Technical and Equity (T&E) partnership model for the refinery's revival, a framework successfully employed at the Nigeria Liquefied Natural Gas (NLNG) facility in Bonny.
Under this model, private firms would provide both technical know-how and equity investment, reducing the financial burden on the state-owned NNPC while injecting efficiency into operations.
PETROAN's National President, Billy Gillis-Harry, hailed the approach as a "vital mechanism to prevent monopolistic practices" in the downstream sector, predicting it would introduce healthy competition, stabilize fuel prices, and create thousands of jobs for tanker drivers, refinery workers, and local communities.
Gillis-Harry also underscored the refinery's potential to serve as a "price check" against unfair market dynamics, particularly in light of recent controversies surrounding private refineries like Dangote Refinery.
"The operationalisation of the Port Harcourt refinery will provide essential price checks, safeguarding the downstream petroleum market against unfair practices," he said, adding that the move would enhance energy security and stimulate economic growth in the Niger Delta region.
The association also expressed gratitude to President Bola Tinubu for his administration's focus on infrastructure, spotlighting the ongoing rehabilitation of the Eleme Expressway—a vital artery for transporting petroleum products from the refinery.
Industry analysts view the Honeywell UOP assessment as a turning point for Nigeria's quest for fuel self-sufficiency. With the refinery's restart previously suspended and a planned outright sale abandoned in July 2025, this audit could unlock partnerships that slash import dependency and bolster local refining capacity.
As the evaluation progresses, stakeholders are optimistic that it will not only revive the Port Harcourt facility but also set a blueprint for rehabilitating other dormant refineries in Warri and Kaduna.
Further details on the timeline for the assessment and investor outreach are expected from NNPC in the coming weeks.
For now, the development has sparked cautious optimism across Nigeria's energy sector, signaling a potential end to decades of refinery woes.
The assessment, aimed at paving the way for potential private investments, was announced by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) in a statement released over the weekend.
PETROAN, a key industry body representing retail fuel outlet owners, described the engagement as a "strategic step" toward restoring the refinery's functionality, which has been plagued by years of underperformance and maintenance challenges.
The refinery, located in Rivers State and with a capacity of 210,000 barrels per day, was shut down for routine maintenance in May 2025 but has yet to resume full operations despite a $1.5 billion rehabilitation effort earlier this year.
The facility's prolonged downtime has contributed to Nigeria's heavy reliance on fuel imports, costing the economy an estimated $9.6 billion annually.
According to Joseph Obele, PETROAN's National Publicity Secretary, the contract awarded to Honeywell UOP—formerly UOP LLC—will provide critical insights into the plant's operational state, enabling informed decisions by prospective investors.
Honeywell UOP specializes in advanced technologies for petroleum refining, gas processing, and petrochemical production, making it a trusted partner for such high-stakes audits.
"This development signals a positive step towards restoring the refinery’s functionality," Obele stated, emphasizing the firm's global expertise in delivering solutions to major manufacturing industries.
The initiative aligns with NNPC's broader strategy to adopt a Technical and Equity (T&E) partnership model for the refinery's revival, a framework successfully employed at the Nigeria Liquefied Natural Gas (NLNG) facility in Bonny.
Under this model, private firms would provide both technical know-how and equity investment, reducing the financial burden on the state-owned NNPC while injecting efficiency into operations.
PETROAN's National President, Billy Gillis-Harry, hailed the approach as a "vital mechanism to prevent monopolistic practices" in the downstream sector, predicting it would introduce healthy competition, stabilize fuel prices, and create thousands of jobs for tanker drivers, refinery workers, and local communities.
Gillis-Harry also underscored the refinery's potential to serve as a "price check" against unfair market dynamics, particularly in light of recent controversies surrounding private refineries like Dangote Refinery.
"The operationalisation of the Port Harcourt refinery will provide essential price checks, safeguarding the downstream petroleum market against unfair practices," he said, adding that the move would enhance energy security and stimulate economic growth in the Niger Delta region.
The association also expressed gratitude to President Bola Tinubu for his administration's focus on infrastructure, spotlighting the ongoing rehabilitation of the Eleme Expressway—a vital artery for transporting petroleum products from the refinery.
Industry analysts view the Honeywell UOP assessment as a turning point for Nigeria's quest for fuel self-sufficiency. With the refinery's restart previously suspended and a planned outright sale abandoned in July 2025, this audit could unlock partnerships that slash import dependency and bolster local refining capacity.
As the evaluation progresses, stakeholders are optimistic that it will not only revive the Port Harcourt facility but also set a blueprint for rehabilitating other dormant refineries in Warri and Kaduna.
Further details on the timeline for the assessment and investor outreach are expected from NNPC in the coming weeks.
For now, the development has sparked cautious optimism across Nigeria's energy sector, signaling a potential end to decades of refinery woes.
Comments
Post a Comment