PETROAN demands guaranteed crude oil supply before Port Harcourt, Warri restart

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By Udeme Akpan, Energy Editor

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The planned revival of Nigeria’s Port Harcourt and Warri refineries could face a critical test beyond rehabilitation and technical completion, as the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has demanded guaranteed crude supply to ensure the plants operate sustainably after restart.

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PETROAN made the demand while responding to President Bola Ahmed Tinubu’s renewed commitment to reviving Nigeria’s refineries and measuring their success by commercial performance rather than simply whether they are producing flames and smoke.

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The association’s National President, Dr. Billy Gillis-Harry, said the focus should shift from commissioning ceremonies to measurable performance, including throughput, availability, margins and return on capital.

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PETROAN also urged the Nigerian National Petroleum Company Limited, NNPC Ltd, to convert its plans into binding agreements with defined completion dates, throughput guarantees and enforceable penalties for non-performance.

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The demand comes against the backdrop of Nigeria’s difficulties in translating its Domestic Crude Supply Obligation, DCSO, into actual deliveries to local refineries.

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Data from the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, showed that 61.9 million barrels of crude were allocated to domestic refineries in the first quarter of 2026, while actual deliveries stood at 28.5 million barrels.

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The gap has raised concerns about whether Nigeria can consistently supply the growing number of domestic refineries with crude at commercially viable prices.

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PETROAN therefore called for firm implementation of the DCSO under the Petroleum Industry Act, PIA, alongside transparent crude pricing and dependable evacuation infrastructure.

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The association warned that without guaranteed feedstock, refinery rehabilitation could simply create expensive assets without sustainable production.

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The potential return of the Port Harcourt and Warri refineries would restore about 335,000 barrels per day, bpd, of refining capacity to Nigeria’s downstream market.

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Port Harcourt has a combined capacity of about 210,000bpd, while Warri has a capacity of about 125,000bpd.

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PETROAN argued that the value of the plants now extends beyond reducing petroleum imports.

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According to the association, the refineries could provide geographical diversification, strengthen competition, reduce supply-chain risks and offer alternative sources of petroleum products whenever other domestic refineries undergo maintenance or suffer operational disruptions.

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The argument comes as Nigeria’s dependence on imported petrol has declined sharply following increased domestic refining.

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PETROAN said petrol imports fell from N2.271 trillion in the first quarter of 2025 to N87.4 billion in the corresponding period of 2026, while domestic refineries supplied about 76.7 per cent of national petrol volumes in Q1 2026.

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PETROAN said the country’s refinery rehabilitation history showed that the problem was not simply lack of money, but governance, technical ownership, accountability and commercial incentives.

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It said about $4.15 billion was allocated to interventions in the Port Harcourt, Warri and Kaduna refineries between 1993 and 2019, while the Federal Executive Council approved a further $3.14 billion package in 2021.

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The Port Harcourt refinery briefly resumed operations in late 2024 before shutting down on May 24, 2025, for maintenance initially scheduled for 30 days.

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Against this background, PETROAN wants the proposed technical equity partnership involving NNPC Ltd and Chinese companies to move from a non-binding memorandum of understanding to a binding commercial agreement.

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The association wants the agreement to include completion deadlines, throughput guarantees, availability thresholds, liquidated damages for non-performance, disclosure of equity and capital commitments, independent technical due diligence and guaranteed crude supply.

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It also called for genuine transfer of operating expertise to Nigerian engineers and improved product evacuation infrastructure.

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