By Adewole Kehinde
“A business that makes nothing, but money is a poor business.” — Henry Ford
On Monday, the Nigerian National Petroleum Company (NNPC) Limited sought to engage reputable and credible operations and maintenance companies to operate and maintain one of its refineries, Port Harcourt Refining Company (PHRC).
According to a tweet on its official X (Twitter) handles, the aim is to ensure reliability and sustainability towards meeting the nation’s fuel supply and energy security obligations.
I could recall that on December 21, 2023, the Federal Government announced the mechanical completion and the flare start-off of the country’s biggest crude refinery in Port Harcourt.
Heineken Lokpobiri, minister of state for Petroleum Resources (Oil), announced a media tour of the Port Harcourt refinery on Thursday.
The Port Harcourt Refineries comprise two units, with the old plant having a refining capacity of 60,000 barrels per day (bpd) and the new plant having 150,000 bpd, both summing up to 210,000 bpd.
The refinery shut down in March 2019 for the first phase of repair works after the government secured the service of Italy’s Maire Tecnimont to handle the review of the refinery complex, with oil major Eni appointed technical adviser.
There are several potential advantages to having reputable and credible operations and maintenance companies operate and maintain the Port Harcourt Refining Company, namely:
Efficiency: Operations and maintenance companies often have greater flexibility and can introduce innovative processes, technologies, and management practices that can lead to increased efficiency and cost savings.
Expertise: Operations and maintenance companies have specialised knowledge, skills, and experience in managing specific types of businesses, which can lead to better outcomes and improved service delivery.
Accountability: Operations and maintenance companies are typically held accountable for their performance through contractual agreements and can be subject to competition, which can incentivize them to deliver high-quality services and value for money.
Flexibility: Operations and maintenance companies will adapt more quickly to changing market conditions and customer needs, allowing for more responsive and agile management of government businesses.
Investment and innovation: Operations and maintenance companies will bring investment capital and industry expertise that may not be readily available within government agencies, leading to improved infrastructure, technology, and service quality.
Risk transfer: By outsourcing the management of the Refining Company to operations and maintenance companies, the government is transferring certain operational and financial risks to the operations and maintenance companies, potentially reducing its exposure to these risks.
It is important to note that while there are potential advantages to operations and maintenance company management, there are also potential drawbacks and risks that need to be carefully considered and managed, such as ensuring transparency, accountability, and protection of public interests.
Adewole Kehinde is the publisher of Swift Reporters and can be reached at 08166240846, email: kennyadewole@gmail.com
