The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has stated that the old Port Harcourt Refinery has been rehabilitated to roughly 90 percent and could recommence operations within a week, pending approval from the Nigerian National Petroleum Company Limited (NNPC Ltd).
The PENGASSAN President, Mr Festus Osifo, disclosed this on Tuesday while speaking on Channels Television’s The Morning Brief.
His remarks come amid renewed debate over the future of Nigeria’s state-owned refineries, following comments by NNPC Ltd’s Group Chief Executive Officer, Bayo Ojulari, who described the reopening of the Port Harcourt Refinery as a potential waste of resources.
Osifo said the refinery is technically ready for operation, explaining that the delay in restarting the plant is largely due to profitability considerations 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,” he said.
“So, if they want to start it today, within the next week, they can bring it back to life. It has been rehabilitated up to about 90 per cent.”
He noted that operating the refinery could result in financial losses depending on crude oil costs and product pricing.
“If you feed crude oil worth, say, five million dollars into the old Port Harcourt refinery, what you are likely to get at the other end when you sell the petroleum products may be about 4.5 million dollars,” Osifo added.
Despite these concerns, the PENGASSAN president maintained that funds spent on the rehabilitation were not wasted, citing significant upgrades carried out at the facility.
According to him, critical components, including compressors, control rooms, and panels, were replaced and remain installed, adding that the refinery’s asset value has improved compared to its pre-rehabilitation state.