Zarma Mustapha, the Deputy President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), has assured that the long-awaited completion of the Port Harcourt Refinery is set to meet its August deadline and will become fully operational this month.
In an interview on Channels Television’s Sunrise Daily, Mustapha expressed optimism about the refinery’s imminent launch, highlighting its potential to significantly enhance Nigeria’s petrol supply.
“I am confident and optimistic that this August deadline is going to be realistic. The refinery will come on stream, fully producing all the necessary components that a refinery is supposed to produce. With a capacity of 60,000 barrels, it can provide approximately 10 to 12 million litres of petrol daily,” Mustapha stated.
When asked about the potential impact on petrol prices, Mustapha suggested that the refinery’s operation could lead to a reduction in prices, depending on the cost of crude oil and the refinery’s pricing strategy.
“Of course, it depends on how much they are willing to sell and how much they get the crude because they are buying the crude at an international price too,” he explained.
Mustapha also pointed out the significant financial investment required for the refinery’s refurbishment. He revealed that a $1.5 billion loan had been secured to fund the project, which will be repaid through the refinery’s operations.
“They took a loan of $1.5 billion from one of the African financial institutions, although I’m not certain which one. The loan will be repaid from the refinery’s operations,” he said.
The Port Harcourt Refinery’s refurbishment and upgrade, located in Nigeria’s oil-rich Niger Delta region, were initially slated for completion in 2019. However, the project has faced multiple setbacks due to political disagreements, funding challenges, and technical issues.
Despite these delays, the refinery’s anticipated launch is seen as crucial for Nigeria’s energy independence and economic stability.