KEY POINTS
- The old Port Harcourt refinery is about 90% rehabilitated and could restart within a week if NNPC approves.
- Profitability concerns remain, as refined output value may be lower than crude input cost.
- Despite possible losses, the facility’s infrastructure and value have improved significantly after rehabilitation.
The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, says the old Port Harcourt refinery has reached about 90 percent rehabilitation and could resume operations within one week if the Nigerian National Petroleum Company, NNPC, Limited gives approval.
Speaking on a television programme, Osifo stated that the facility is technically functional and capable of restarting immediately.
According to him, the remaining hurdle is not engineering readiness but a business decision by NNPC on whether restarting the plant makes financial sense.
Profitability Concerns Still Loom
Osifo explained that despite the near completion of repairs, the refinery could still run at a loss. He illustrated that crude oil valued at about $5 million might produce refined products worth roughly $4.5 million, meaning operations could be unprofitable.
This potential loss margin, he said, is a key reason NNPC may be cautious about restarting the plant even though it is mechanically prepared.
The labour leader emphasized that funds spent on the refinery’s rehabilitation were not wasted. He noted that major components, including compressors, control rooms, and panels, were replaced, significantly improving the facility’s overall value compared to its pre-repair condition.
NNPC Group CEO Bayo Ojulari recently disclosed that Nigeria’s state-owned refineries in Warri, Port Harcourt, and Kaduna were shut down because they were recording massive financial losses. The Port Harcourt refinery had earlier been closed for maintenance in May 2025.
By November 2025, NNPC announced plans to partner with private refinery operators to revive the struggling plants after a comprehensive review.
