By Nnamdi Ojiego

If reports emanating from the Port Harcourt Refining Company, PHRC, are anything to go by, Nigerians may not wait much longer to enjoy the dividends from the ongoing rehabilitation of the company.

Those who have been following the entire process from the very beginning will agree that those saddled with the responsibility of bringing the largest refinery in the country back to life are not leaving any stones unturned to deliver on the mandate given to them by President Muhammadu Buhari.

Mixed Reactions

When the news of the rehabilitation of the refinery broke, with the signing of the contract between the NNPC and Maire Tecnimont SpA, many doubted it. To them, forces who are benefiting from the inability of the country’s refineries to refine would never allow the rehabilitation project to succeed. They were almost certain that the project would fail.

However, in less than four months from the contract signing, almost all the preliminary work has been completed. With the level of work put into the project already, all the doubting ‘Thomases’ are embracing the reality that it is no longer business as usual.

Kick-off

The contract to rehabilitate the foremost refining firm in Nigeria was signed on April 6 and technically kicked off on May 6, 2021. The project would be funded from the $1 billion loan sourced by the Federal Government, while the rest would come from appropriations and savings from the Nigeria National Petroleum Corporation, NNPC, throughout the project.

The entire project is expected to take 44 months from the date of contract award and would be carried out in stages, with the old refinery (Area 5) being the first to be completed and made ready to process hydrocarbons within 24 months, which is in 2023.

Phases

According to the contract papers, the rehabilitation exercise is divided into two phases. The first phase comprises the Plant Integrity Survey and Scope of Work Definition (Technical Audit). This has been successfully completed and the final report was submitted.

The second phase is subdivided into the Pre-EPCIC (Engagement of consultants, bid process and contractor selection, contract award) and the EPCIC (Engineering, Procurement, Construction, Installation and Commissioning).

The EPCIC contract was awarded to Tecnimont SpA after an open and transparent successful bidding process with the involvement of all the stakeholders, including the Labour unions, the Federal Ministry of Finance, NEITI, etc., and the approval of the Federal Executive Council, FEC.

Right of Way

The scope of the rehabilitation also covers the construction of protective barriers along the pipeline right of way to protect the pipelines from the jetty to the refinery and the construction of access roads which of course lead to the communities.

This measure is imperative as it would not only stop criminal encroachment into the right of ways of the pipelines and facilities but also prevent incessant leakages leading to pollution and sometimes explosions due to tampering by unscrupulous elements. The access roads will facilitate the movement of people and goods, and ameliorate the sufferings of the host communities due to dilapidated road networks.

Physical Inspection

The management of the Port Harcourt Refinery, led by the Managing Director, Engr. Ahmed Dikko, who is supervising the project on behalf of the Nigerian National Petroleum Corporation, NNPC, is not leaving anything to chance. They are doing everything possible to ensure the project is delivered on schedule.

The MD had, while speaking on the progress of the work recently, said the PHRC management has put all the necessary measures in place to ensure smooth execution of the project, including ensuring that all the plants are hydrocarbon-free for physical inspection by the contractors.

“We have been busy as owners, providing tons of Rely-upon information which is required by the contractor to base their activities on those. It is not a small thing knowing full well that all the specs of all the equipment and everything therein that will make the contractor succeed have to be given; all the documentation that we have. So we have done that. We’ve given thousands of documents to the contractor.

Construction Facilities

“Handover of the plants and offsite locations (in hydrocarbon-free condition) to the contractor is ongoing. Area 5 has been fully handed over to the contractor for commencement of EPCIC while preparation for the handover of Area 1, 2 & 3 is ongoing.

“The location earmarked for the construction of the project office building has also been handed over to the contractor. Furthermore, 15 temporary construction facilities have been also handed over to Tecnimont (TCM) and more are being prepared for handover.

“Review of plant documentation/design information [such as engineering drawings (PFDs, P&IDs etc.), equipment datasheets etc.] and clarifications of technical queries between PHRC/Consultants and Contractors are ongoing. Procurement and placement of orders for materials have commenced.”

Early Works

The contractors, Technimont SpA, on their part, are not found wanting either. They wasted no time in commencing work. They started with what is called ‘early works’ which require setting up an operational office in PHRC and other preliminary activities.

The contractors have come down to the site with some of their sub-contractors and inspected tankages and some off-site facilities. This is very important for them because it all formed that preparation to physically begin the work.

The main contractor and sub-contractors have mobilized to the site. 3D scanning of the plants has been completed for Area 5, and it is ongoing for Areas 1, 2 and 3.

Transparency

It is important to note that so much consultation and transparency went into the process leading to the award of the contract. Right from the bidding process, to the selection of the contractor, and the eventual award of the project, due process was followed.

In the process of selecting the contractors, reputable international EPC companies were used to bid for this exercise. This in itself is a very big plus, and the bidding process was quite open and transparent.

Unprecedented

The Bureau of Public Procurement, NEITI, ICRC, Federal Ministry of Finance, and others were very much involved in the whole process. The NNPC management utilized other external stakeholders in all the processes so that they could contribute and witness the openness of the exercise.

It also employed the services of a robust project management consultant and owner engineers who are supporting the PHRC team in their efforts to deliver the project based on what had been scoped earlier in phase one.

This is so because, part of what is in the contract is to make sure, as much as possible, that the original manufacturers of the equipment were involved in the execution of the project. This is unprecedented in the history of NNPC project development, and it is already producing the desired results.

It is a robust combination of experience and international bodies that are part of this project. And with a dedicated team at the PHRC that has shown resilience, professionalism, and is truly committed to making sure that exactly what is captured in the scope of work is what is being delivered.

Assurance

Dikko is fully aware that over 200 million Nigerians are waiting on him to deliver on the project, and he has consistently reiterated his commitment not to fail the people.

He said: “We are upbeat and sure we are very much on schedule and we will reach there. I will like to assure Nigerians and other stakeholders that we will surely get this right. We will put in the energy that is required, and make sure that we cover all the angles so that together we can deliver a refinery that can run sustainably and profitably over a long period. “

It is equally, heartwarming that the PHRC team understands that host communities’ engagement is one of the key priorities for the success of this project.

In projects as huge as this, the host communities play important roles because no meaningful progress can be made in a hostile environment. It is good that the management recognizes this from the onset of the award of the contract.

The company adopted a wonderful approach, which is to get the communities to buy into the project and be part of it. Even the contractors also nominated a community representative that is working closely with the PHRC’s Public Affairs team, to ensure the right information is given to the communities.

“So much has been covered and I’m delighted with the way we are going. We are going to have the support of these communities and would continue with this detailed discussion with them and work as partners to deliver this project without any hindrance.”