Warri Refinery: How NNPC defied doubts to achieve success

BUSINESS DAY NG

After a decade-long closure, the Warri Refining & Petrochemicals Company in Delta State resumed operations on December 30, 2024, to the astonishment of everyone present at the vast refinery complex in Ekpan, Warri. The event was marked by the presence of key figures, including the Board Chairman of NNPC Limited, Chief Pius Akinyelure; Group Chief Executive Officer Mele Kyari; the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed; and the Managing Director of WRPC, Efifia Chu. These leaders, alongside excited workers and journalists, were on hand to witness the successful startup of the refinery’s CDU, Gas Plant, and VDU, commonly referred to as Area I. The reopening sparked palpable excitement, with Harry Okenini, Chairman of the Delta State chapter of the Independent Petroleum Marketers Association of Nigeria, unable to contain his joy. He shared that before coming to the refinery on that day, he had first made a stop at a church to offer thanksgiving, uncertain if the news of the refinery’s revival was true.

The celebratory mood at the refinery, which has a capacity of 125,000 barrels per day, could be likened to the remarkable and rare recovery of a patient from a 10-year coma. Given the troubled history of government-owned refineries in Nigeria, the Warri refinery’s revival after such an extended closure was seen as nothing short of extraordinary. Many had believed that only privatisation could bring about a change in the fortunes of these refineries, with the argument that the government should not be in the business of running businesses.

However, despite such doubts, the Federal Government, under President Muhammadu Buhari, had committed to reviving the country’s four state-owned refineries, which collectively have a capacity of 445,000 barrels per day. This included plans for the 110,000 bpd Kaduna refinery, the 60,000 bpd Old Port Harcourt refinery, the 150,000 bpd New Port Harcourt refinery, and the Warri refinery. Despite the government’s assurance, many were sceptical, given the history of neglect, poor management, and failed multi-billion-naira maintenance projects that had plagued these facilities for years.

Read also: Warri refinery operations will boost job, wealth creation in Delta

The Bureau of Public Enterprises had reported that the Warri refinery had never achieved full capacity utilisation, and after years of decline and shutdown in 2015 due to disrepair and crude shortages, many dismissed the government’s pledge to revamp it as political rhetoric.

Thus, when Mele Kyari, the NNPC GCEO, toured the facility on December 30, 2024, and declared, “This plant is running. We have not completed 100%,” it was a strong affirmation of the resilience and determination of NNPC under his leadership. It was the triumph of resilience in an NNPC known prior for turnaround maintenance scandals running into billions of naira…