Shell supply crude oil to Port-Harcourt refinery as operations set to begin

Shell Nigeria has begun supplying crude oil to Nigeria’s Port-Harcourt refinery, ahead of the start of refining operations later this quarter.

Bamidele Odugbesan, the company’s spokeswoman, confirmed this information in an interview with Reuters, stating that supplies to the company occurred 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 stated that around 475,000 barrels of oil were delivered to the Port-Harcourt refinery around January.

READ ALSO: Few weeks after operation, Dangote refinery set to import crude oil from US

Following the termination of gasoline subsidies in June, Nigeria planned to halt petroleum product imports while maintaining relatively low prices. Following the termination of subsidies, fuel costs increased by more than 200%.

Despite the CEO of the NNPCL stating in a June interview that local refining would not significantly reduce fuel costs nationally following the subsidy, he indicated that the reduction would be between N20 to N30 compared to imported fuel.

Last month, the Nigerian Upstream Regulatory Agency (NUPRC) mandated that oil companies operating in Nigeria supply 483,000 barrels of oil per day to local refineries around the country. One of the refineries set to profit is the newly renovated Port-Harcourt refinery, which was scheduled to receive 75,000 barrels of oil per day.

Since 2021, the Nigerian government, through the NNPCL, has hired contractors to rehabilitate four state-owned refineries across the country in an effort to increase local refining capacity following the commissioning of the 650,000 bpd Dangote refinery.

In December, the NNPCL declared that the Port-Harcourt refinery’s phase 1 turnaround maintenance and mechanical testing had been completed. The repairs cost approximately $1.5 billion and were planned in stages.
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