The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has revealed that the old Port Harcourt Refinery has been rehabilitated to about 90 percent and could resume operations within a week if the Nigerian National Petroleum Company Limited (NNPC Ltd) approves its restart.
PENGASSAN President, Mr Festus Osifo, disclosed this on Tuesday during an interview on Channels Television’s The Morning Brief, highlighting that the refinery is technically ready for operation. He explained that the delay in restarting the plant is primarily due to profitability concerns rather than mechanical issues.
“As of today, you can start the old Port Harcourt refinery, and it will function. You can put it on today, and it will function. However, NNPCL as a company is there to make a profit,” Osifo said. He added that operating the facility could lead to financial losses depending on crude oil costs and product pricing. For instance, crude oil valued at five million dollars could yield petroleum products worth only about 4.5 million dollars.
Despite these concerns, Osifo emphasized that funds spent on the rehabilitation were not wasted. The upgrades included replacing critical components such as compressors, control rooms, and panels, significantly improving the refinery’s asset value compared to its pre-rehabilitation state.
The PENGASSAN president’s remarks come amid ongoing debate over the future of Nigeria’s state-owned refineries, especially after NNPC Ltd’s Group CEO, Bayo Ojulari, suggested that reopening the Port Harcourt Refinery might not be financially viable.
With the refinery now technically ready, PENGASSAN is urging NNPCL to consider operationalizing the facility to meet domestic petroleum demand and leverage the investment already made.
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