Shell Nigeria has kicked off the delivery of 470,000 barrels of crude oil to Nigeria’s Port-Harcourt refinery, gearing up for refining operations set to begin later this quarter.
According to the company’s spokesperson, Bamidele Odugbesan, who shared the news with Reuters, deliveries were successfully made to the refinery this week.
He stated, “Future supplies from Bonny oil and gas terminal would be guided by the demand for the product,”
In a separate statement, Shell’s Bonny oil terminal manager said a total said a total of 475,000 barrels of oil was delivered to the Port-Harcourt refinery around January.
Nigeria’s Efforts to Curb Petroleum Imports and Stabilize Prices After Fuel Subsidy Removal
Nigeria has set its sights on reducing its reliance on imported petroleum products and ensuring reasonable prices after scrapping the fuel subsidy in June. This move saw fuel prices skyrocket by over 200 percent.
Although the CEO of the NNPCL indicated in a June interview that local refining wouldn’t lead to a significant drop in fuel prices nationwide post-subsidy, he noted a potential reduction of about N20 to N30 compared to imported fuel.
Recently, the Nigerian Upstream Regulatory Agency (NUPRC) instructed oil firms operating in Nigeria to allocate a combined total of 483,000 barrels of oil per day to local refineries across the country.
Among the refineries set to benefit is the newly refurbished Port-Harcourt refinery, slated to receive a daily supply of 75,000 barrels of oil.
Since 2021, the Nigerian government, through the NNPCL, has enlisted contractors to overhaul the four state-owned refineries nationwide, aiming to enhance local refining capacity following the inauguration of the 650,000 bpd Dangote refinery.
In December, the NNPCL announced the successful completion of turnaround maintenance and mechanical testing for phase 1 of the Port-Harcourt refinery. This comprehensive repair endeavor, carried out in stages, incurred approximately $1.5 billion in costs.