Furore over Port Harcourt Refinery’s refined products

  • Host community attacks NNPC, claims complex not functional, doesn’t produce 1.4m bpd
  • Urges oil firm to stop putting out false information to deceive Nigerians
  • NNPC adopts cloud-based procurement system for 2025 rollout

The Secretary of the Alesa community stakeholders, Timothy Mgbere, has alleged that the petroleum products loaded from the newly rehabilitated Port Harcourt Refinery were not freshly refined but products left in the storage tank of the facility in the last three years.

He also alleged that the refinery only loaded six trucks on Tuesday despite stating that 200 trucks would be picked up from the refinery daily.

Mgbere made these revelations during his appearance as a guest on a live television programme on Thursday.

Alesa, one of the 10 major communities in Eleme, Rivers State, is the host community of the Port-Harcourt Refinery.

On Tuesday, the 60,000-capacity Port-Harcourt Refinery resumed operations after years of inactivity, drawing initial praise from Nigerians and industry stakeholders.

The NNPC said the newly rehabilitated complex of the old Port Harcourt refinery, which had been revamped and upgraded with modern equipment, is operating at a refining capacity of 70 per cent of its installed capacity.

NNPC added that diesel and Pour Fuel Oil would be the highest output from the refinery, with a daily capacity of 1.5 million litres and 2.1 million litres, respectively.

This is followed by a daily output of Straight-Run Gasoline (Naphtha) blended into 1.4 million litres of Premium Motor Spirit (petrol), 900,000 litres of kerosene, and low-pour fuel oil of 2.1 million litres.

It was stated that about 200 trucks of petrol would be released into the Nigerian market daily.

But speaking during the interview, the secretary described the ceremony held as a “party”, stressing that the full units of the old complex are not functional.

He said, “The Port Harcourt refinery, and by extension, the Port Harcourt depot, happens to be the mainstay of the Alesa community economy, the economic activities emanating from the operations of these depots means a lot to us as a community people, but as it were, now, I don’t think it’s a cause for celebration yet, because what we are having in the media space is different from what we have on the ground.

“I can tell you on authority as a community person, that what happened on Tuesday was just a mere show at the Port Harcourt depot.

“A mere show in the sense that the Port Harcourt refinery, we call it area five, that is the old refinery, is merely in skeletal operation.

“When I say skeletal, I mean that some units of the refinery were recently brought up and are running, but not the entire unit of the old refinery is functional, as we speak.

“I will give them the credit that at least they have started something, but not to say, according to the Head of Corporate Communication of the NNPC limited, Femi Soneye, like it is in the media that they are already producing 1.4m barrels per day. That’s not the case. That’s not true.

“It’s a very big, I don’t want to use the word lie, but as an agency that is holding the oil industry in trust for Nigerians, they shouldn’t put out some of this information that is not true.”

He added, The true picture of what happened on Tuesday is that the NNPC has been under pressure to televise to Nigerians that everything is okay and then that the old refinery has started functioning.

“I can tell you that the GMD, or the CEO of the refinery, has been in Port Harcourt since Monday; the other MDs were also in Port Harcourt. The MD of Port Harcourt refinery and those heading the operations department didn’t sleep through the night of Monday to Tuesday because of this whole event they had on Tuesday.

“What is the true picture? The old Port Harcourt refinery is built with its utilities, different from the new complex. The tank farm that is servicing the old Port Harcourt refinery has a different loading gantry at the depot.”

He added that NNPCL only dispatched six trucks on Tuesday, relying solely on the existing stock at the Port Harcourt Refinery.

He further stressed that the refinery is not producing 1.4m barrels of litres of petrol per day and urged the NNPCL to stop putting out false information to deceive Nigerians.

“The party they had on Tuesday was held at the new loading gantry that is directly connected to the new refinery. And so, how does that work? It is impossible.

“They went there because the storage facility for the old refinery had some old stock that has been there for over three years.

“And so what they had, they released that stock, and then loaded six trucks and then televised it to Nigerians that it is the production from the old refinery. That’s not true.

“And so I like Nigerians to know the truth, but they don’t need to believe me, because Nigerians, no matter how you paint the true pictures to them, they get sentimental.

They get tribal. They want to whip some sentiment and all that the product that was loaded. But let it be on record that it was only six trucks that they used to calibrate the new loading gantry. The product was not a new refined product from the old refinery.”

NNPC adopts cloud-based procurement system for 2025 rollout

However, the NNPC will transition its procurement contracts to a cloud-based platform on the SAP Ariba network starting January 1, 2025.

This move aims to boost competitiveness and streamline operations.

In a statement on X on Thursday, the company’s Chief Supply Chain Officer, Uzoma Emelife, stated that the transition is part of NNPC’s larger digital plan to improve business performance and supplier collaboration.

As part of this move, the NNPC will hold a suppliers’ summit on December 3, 2024, titled “Reshaping the Future of Procurement and Supplier Management.” The event will give merchants information about contracting opportunities on the Ariba platform.

“This remarkable step will bring our esteemed vendors in touch with contracting opportunities on the NNPC Ariba Platform, a secure and exclusive marketplace tailored for end-to-end procurement of goods and services,” the statement noted.

NNPC emphasized that all procurement stages—such as issuing RFQs/RFPs, bid submissions and evaluations, contract negotiations, purchase order issuance, and invoice processing—will occur on the Ariba platform. This transition is expected to enhance transparency, reduce costs, and improve supplier experience.

The company added, “We are confident that this enablement will further enhance the petroleum industry contracting cycle efficiency and reduce costs in line with the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024.”

The statement concluded by inviting suppliers to participate actively, ensuring a seamless transition.

Attendees of the summit will gain valuable insights into platform registration, navigation, procurement workflows, and best practices for successful collaboration with NNPC.