NNPC Signs Contract with ARPHL to Build Refinery in Port Harcourt

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The Nigerian National Petroleum Company Limited (NNPC) has inked a deal with African Refinery Port Harcourt Limited (ARPHL) to construct a 100,000 barrels per day (bpd) refinery within the Port Harcourt Refinery and Petrochemical Complex in Rivers state. The agreement, disclosed by NNPC on its official platform, saw Dapo Segun, the Executive Director of Downstream, signing on behalf of the national oil company.

ARPHL, described as a special purpose vehicle, outlined its role in co-locating the refinery, emphasizing its alignment with the Ministry of Petroleum Resources' strategic plan to enhance Nigeria's national refining capacity swiftly.

Having emerged as the winning bidder among 11 other investors for the Port Harcourt co-location project, ARPHL detailed its comprehensive proposal and solution submitted to NNPC. While the contract value remains undisclosed, the memorandum of understanding (MoU) entails ARPHL owning and operating the refinery on adjacent land, benefitting from direct crude supply from NNPC and shared services.

Despite ongoing rehabilitation efforts and the recent mechanical completion of phase 1 of the Port Harcourt refinery, concerns linger over the delay in commencing operations. The signing of the agreement signifies NNPC's commitment to bolstering local refining capacity, aiming to alleviate supply challenges and provide employment opportunities.

Amidst a petrol supply crisis affecting Abuja and neighboring states, NNPC attributed the situation to logistical issues, reassuring the public of product sufficiency and stable prices.

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