Port Harcourt, Nigeria – Nigeria’s old Port Harcourt Refinery could resume operations within one week if the Nigerian National Petroleum Company Limited approves its restart, following rehabilitation work that has reached approximately 90 percent completion, according to the Petroleum and Natural Gas Senior Staff Association of Nigeria.
PENGASSAN President Festus Osifo disclosed this development during an appearance on Channels Television’s The Morning Brief on Tuesday, addressing renewed debate over the future of Nigeria’s state-owned refineries. The remarks come in response to comments by NNPC Ltd’s Group Chief Executive Officer Bayo Ojulari, who recently described the reopening of the Port Harcourt Refinery as a potential waste of resources.
Osifo clarified that the refinery is technically ready for operation, with the delay in restarting primarily 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 explained.
The association president acknowledged potential financial challenges, noting that operating the refinery could result in 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 stated.
Despite profitability concerns, Osifo maintained that rehabilitation funds were not wasted, citing significant upgrades to critical components including compressors, control rooms, and panels. He emphasized that the refinery’s asset value has improved substantially compared to its pre-rehabilitation state, with all replaced equipment remaining installed and functional.
Source: thenationonlineng.net