Amidst the current anxiety over the ongoing rehabilitation of the Port Harcourt Refinery, the Chief Corporate Communications Officer of the Nigerian National Petroleum Company Limited (NNPC), Femi Soneye, in this interview with Peter Uzoho, says the refinery will begin operation immediately after the current testing of the facility is concluded. He also speaks on other burning issues. Excerpts:
Given the ongoing rehabilitation of refineries, tell us about the efforts of NNPC and other oil firms to protect pipelines and tackle oil theft in Nigeria.
The security and maintenance of our product and crude transfer pipelines to terminals and refineries will fall under the purview of Build, Operate and Transfer (BOT) concessionaires. This strategic arrangement aims to mitigate third-party incursions and sabotage, ensuring the integrity of the pipelines.
We have also enhanced the security architecture by working with all branches of the Military, from the Navy to the Army and the Air Force, police, DSS, and the NSCDC.
The Nigerian National Petroleum Company (NNPC) Limited is also actively combating oil theft in Nigeria through collaborative efforts with private security firms and oil-producing communities. This strategic partnership aims to enhance surveillance and security measures to curb illicit activities. By engaging local communities and leveraging private security expertise, NNPC reinforces its commitment to safeguarding national resources and preventing unauthorised activities in the oil sector.
Are there ongoing efforts to rehabilitate pipelines and other assets to enhance the distribution of petroleum products nationwide?
The Nigerian Pipelines and Storage Company (NPSC), a subsidiary of NNPC Limited, is actively engaged in the rehabilitation of pipelines and storage terminals across the country. In 2021, the Group Chief Executive Officer of NNPC emphasised the adoption of the BOT model for this initiative.
The competent project companies would be selected through an open competitive bidding process. The chosen BOT contractor will be responsible for financing the project, operating it, and, after recovering the investment and achieving the targeted profit, transferring the asset back to NNPC/NPSC. Revenue for the BOT contractor’s recovery and returns will be generated through tariffs during the asset’s operation.
NPSC is currently in the final stages of concluding contractual arrangements with the BOT Concessionaires. The implementation and execution of these contracts are anticipated to significantly improve the reliable distribution of petroleum products nationwide.
With vandalism and oil theft, do you think Nigeria can still meet its target?
What I can tell you is that the NNPCL has been involved in various initiatives to increase oil and gas production in Nigeria. These efforts typically include collaborations with international oil companies, investment in exploration and drilling activities, and implementing technology upgrades to enhance efficiency. We are also investing in new assets and enhancing idle ones.
In its efforts to further boost natural gas utilisation in the country and enhance Nigeria’s gas revenue, apart from crude, NNPCL signed two major agreements to deliver LNG to the domestic gas market and the international LNG market. During two separate signing ceremonies held on the sidelines of the United Nations Climate Change Conference (also known as COP28), NNPCL. signed an MoU with Wison Heavy Industry Co. Ltd, a Chinese company, for the development of floating LNG projects in Nigeria, targeting the international LNG market.
Could you take us through some of the Memorandum of Understanding (MoU) you have with some companies?
Also, NNPC Prime LNG Ltd, an arm of NNPC Trading Ltd., signed a Supply, Installation and Commissioning Agreement with SDP Services, an independent oil and gas company, for a 421-tonne per day LNG project targeting the domestic LNG market. The Floating LNG MoU was signed by the Executive Vice President, Gas, Power & New Energy, Olalekan Ogunleye, on behalf of
NNPC Ltd and Mr Kai Xu, Managing Director of Wison Ltd, on behalf of his company. Both parties agreed to work together to chart a roadmap for the project development that will lead to an investment decision.
Similarly, the Small-Scale LNG (SSLNG) Project agreement was signed by the Managing Director, of NNPC Trading Ltd., Mr. Lawal Sade, on behalf of NNPC Prime LNG Ltd. while Mr Abhinav Modi, Managing Director of SDP Services Ltd., signed on behalf of his company.
The SSLNG Project, which will be located at Ajaokuta in Kogi State, Central Nigeria, will ensure the efficient supply of LNG to the Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide. The LNG Project is expected to be operational by December 2024.
Reactions are trailing the announcement that the Port Harcourt Refinery has been completed. Kindly provide an update on that.
In a month-long documentary series, NNPC Ltd has meticulously showcased the progress of PH Refinery (OPHR) rehabilitation, emphasising completed works, equipment installation, and mechanical completion.
Of significant note is the rehabilitation of the 60,000 BPSD OPHR, with the NNPC affirming that the mechanical completion phase would be concluded by December 2023, a testament to the company’s dedication to its commitment to the Nigerian people. That happened.
The current phase involves rigorous testing, leak checks, line blowing, drying, flushing, steam out, and equipment calibration before the introduction of hydrocarbons. These meticulous checks align with global best practices and are deemed essential prerequisites for the refining process.
Emphasising safety protocols, the testing for air in the lines is underscored as vital to prevent potential explosions, adhering to the highest international standards.
What are the plans to ensure that the Warri Refinery comes back to life?
Simultaneously, I’m glad to inform you that progress is noted at the Warri refinery, nearing its mechanical completion phase.
Despite the eagerness to complete the project, NNPC Ltd, as a global energy company, prioritises the thorough execution of all necessary checks and testing, reinforcing its commitment to refinery excellence on a global scale.
We recognise the historical distrust resulting from years of refinery neglect, we want to assure Nigerians that, this time, our commitment is genuine. We are fully prepared to guarantee energy security for our nation.
The major blessing is the commitment of President Bola Ahmed Tinubu. Unlike what used to happen in the past where continuity of projects suffered mishaps as a result of a new government jettisoning pre-awarded contracts, our President has kept faith. When he took over, he did not order work to stop. Rather, he encouraged us to get going and deliver. He is committed to ensuring that the refinery is delivered so that Nigerians can benefit from the humongous outcomes it would generate. Then we also have to understand that my boss,
Mele Kyari is a man who knows what he is doing and the fact that last Christmas season did not witness scarcity of products demonstrates the type of results you achieve when you have a President and a GCEO who are operating from the same page. The NNPCL GCEO is committed to Nigeria’s energy sufficiency and he has the buy-in of President Tinubu. Because of the need to ensure that Nigerians enjoy better dividends of democracy, the GCEO continues to explore all avenues to make sure that those troubling issues of the past do not come up again. In the end, it is all about making Nigerians happier.
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