Shell Nigeria Resumes Supplying Oil to Port Harcourt Refinery After Five-Year Outage
Shell PLC’s Nigerian unit, the Shell Petroleum Development Company of Nigeria, has announced the resumption of oil supply to the Port Harcourt Refining Company in southern Nigeria. The company has successfully delivered over 475,000 barrels of crude oil, signaling a positive development for the country’s oil and gas industry.
After an outage lasting more than five years, the resumption of supply from Shell’s Bonny oil and gas terminal to the refinery is a significant achievement for the Nigerian National Petroleum Company (NNPC). The NNPC recently completed phase-one rehabilitation work at the Port Harcourt refinery, a $1.5 billion project covering engineering, procurement, construction, installation, and commissioning phases.
Osagie Okunbor, the managing director at Shell Petroleum Development Company of Nigeria, expressed optimism about future supplies from the terminal, stating that they would depend on demand. With four idled refineries in Nigeria, collectively capable of producing 475,000 barrels a day, the resumption of production at the Port Harcourt refinery is expected to reduce the country’s dependence on imported petrol.
Osita Nnajiofor, installation manager at the Bonny terminal, highlighted the significance of resuming crude oil supply, calling it a game-changing move that would support the federal government’s aspiration of a steady supply of petroleum products to the downstream market. Additionally, it is expected to bring various economic benefits to the nation.
The resumption of oil supply to the Port Harcourt Refining Company marks a crucial step towards addressing Nigeria’s reliance on imported petroleum products. With ongoing efforts to revitalize the country’s refining capacity, Nigeria aims to strengthen its energy independence and boost economic growth in the long run.
Analyst comment
Positive
As an analyst, I expect the resumption of oil supply to the Port Harcourt Refinery to have a positive impact on the market. It will reduce Nigeria’s dependence on imported petroleum products, strengthen energy independence, and support economic growth. With ongoing efforts to revitalize refining capacity, the country is moving towards a more sustainable oil and gas industry.
