Port Harcourt refinery targets N182bn earnings

Despite the slide in global crude oil price, the Port Harcourt
Refining Company (PHRC) has concluded plans to rake in
about N182 billion from the sale of petroleum products.
Besides, the company said it also recorded a net profit of
N11.2 billion in December 2014.
Its Managing Director, Dr. Bafred Enjugu, explained that the
revenue target and last month’s profit figure of N11.2 billion
was as a result of the phased rehabilitation programme and
resumption of crude supply to the plants.
Enjugu stated that last month’s financial performance was
N8.2 billion or 250 per cent higher than the N3.2 billion
posted by the company in November.
‘‘The company has also mapped out plans to harness various
business opportunities available to it through plans by its
commercial department to rake in additional N182 billion
annually from sales of deregulated products including Liquefied
Petroleum Gas (LPG), Automotive Gas Oil (AGO) and other
derivatives,’’ he said.
He stated that the development remained the dividend of the
ongoing phased rehabilitation of the company’s plant facilities
and receipt of crude by marine vessels. The PHRC regretted
that pipeline vandalism on its 54 kilometre crude line from
Shell facility in Bonny had made it near impossible for the
refinery to function until the intervention of President Goodluck
Jonathan through the Minister of Petroleum Resources, Mrs.
Diezani Alison-Madueke, who approved receipt of crude for the
refinery through marine vessels.
As part of the direct intervention of government, he said
Alison-Madueke has also resolved the age-long problem of
epileptic power supply to run the facilities at the refinery.
Under the power supply arrangement, private player in the
electric power sector, Gel Utilities Limited, now provides
electricity to run the refinery from its recently commissioned
generation plants.
With the various measures activated to enhance the
operations of the company, Enjugu said the company has
started making meaningful contribution to the nation’s
petroleum products pool.
Such developments, according to him, would not only bring in
more income for the refinery but will also help solve
constraints, which sometimes led to shut down of its
processing units. Enjugu said the decision of the Federal
Government to supply crude to the refinery by marine
transportation; supply of power by IPP, and approval for a
new strategy of using in-house skills for a phased
rehabilitation have contributed to the recent increase in
production and plant capacity utilisation.
He disclosed that the Nigerian National Petroleum Corporation
(NNPC) resorted to the new strategy of phased rehabilitation
using in-house staff and local capacities when the Original
Refinery Builders (ORB), the JGC of Japan refused to come to
the country for the job, citing security concerns.
The use of in-house personnel in rehabilitation of the refinery,
he pointed out, also falls in line with the Nigerian Content
Development Act for the petroleum sector.