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Mixed reactions trail proposed handover of PH Refinery to private operators

By Stella Odueme 

Mixed reactions have trailed moves by the Nigerian National Petroleum Company (NNPC) Ltd. to handover the operations of the Port Harcourt Refinery to private operators. 

Though NNPCL attributed the move to the need to increase refinery dependability while boosting Nigeria’s fuel supply and energy security, some Nigerians  applauded NNPCL for the initiative, others said it may be another calculated attempt to give away the Port Harcourt Refinery to government cronies and political associates that will do the biddings of government officials. 

Public Affairs Analyst, Mr. Jide Ojo said it is in the nation’s best interests for competent and technical operators with the financial might to operate the Port Harcourt Refinery. 

In an interview with The Authority on Tuesday in Abuja he recalled that over the years, it has been evident that civil servants are not the best to handle the affairs of the refinery. 

“Is a commendable effort to hand over the refurbished Port Harcourt Refinery to private operators but I have just only one to say, whoever they are handing over to  should be competent. He should have both financial and technical competence for the job. 

“Over the decades, the bureaucracy, the Civil servants are not interested in making that Refinery to work otherwise the refinery would not have gone comatose in the first time, so if they refurbished it and give it back to them again they will collapse it. 

“So it is in our best interest to give it to private operator because if they give it to them they bring it down within three years. It is in our best interest to handover the maintenance and operations to the private operator so that there will be proper minestrone and oversight from NNPCL to make sure that it functions but it should not be like all these discos that were given to all these political jobbers who do not have financial and technical competence to do what they were asked to do,” he stressed.

On his part, Executive Director, TAF Africa, Mr. Hake Epelle harped on ensuring that the due process is followed to get qualified and competent operators to man the affairs of the Port Harcourt Refinery. 

“I don’t know the processes that they have followed and the question is has it really been advertised? In most cases, governments are not the best when it comes to public enterprises. If the due process is followed it will be more productive for private operators to handle it”, he stated. 

Mr. Jude Okafor, a businessman said the idea though good is deceptive as a result of the corruption already in the system. 

“No one can say emphatically if at the end it will work because of the corruption in the system. If they  will not allow corruption to take centre stage in the process of getting the best bidder, good but this is Nigeria. There is no trust,” he noted. 

“At the end, it will still be food for the boys. The idea is good because government cannot run the Port Harcourt Refinery well, that is why it had not worked. But most of us don’t trust the system and that is where the challenge is,” Mrs. Grace Aragba noted. 

The NNPCL, in a statement published on its website had described its hunt for renowned and competent operations and maintenance businesses to take over the refinery’s administration.

According to the statement, various facets of refinery business activities, including as production and operations planning and execution, environmental management, health and safety management, and small project supervision, would fall within the purview of the chosen firm. 

In order to be considered for this opportunity, “prospective organisations must exhibit a high level of financial competence and have an average annual turnover of at least $2 billion USD for the fiscal years ending in 2020, 2021, 2022, and so on.

“This criterion is in place to guarantee that the selected operator has the resources and financial stability needed to operate the refinery efficiently.

As part of a test run, the NNPCL has started supplying crude oil to the Port Harcourt refinery, indicating a resurgence of the facility’s activities.

The refinery’s Area-5 Plant, which is situated in Nigeria’s Niger Delta, underwent mechanical completion of restoration work, as reported by the Federal Government on December 21, 2023.

“After the Christmas break, the facility will be able to process 60,000 barrels of crude oil per day thanks to the completion of the first phase of renovations.

“The choice to allow private companies to handle the Port Harcourt Refinery, which has been in operation since 1965, is consistent with the Nigerian government’s overarching plan to modernize and improve the efficiency of the country’s oil industry.

“Significant funding for the refurbishment and upgrading of the refinery complex was approved by the government in March 2021, signifying a major investment in the country’s energy infrastructure.” 

It is envisaged  that the refinery’s privatization will enhance management, boost output, and lessen dependency on imported refined petroleum products.

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