Port Harcourt Refinery 90% Ready, NNPCL Can Restart within One Week, PENGASSAN Says
- Port Harcourt Refinery rehabilitation has reached 90% completion, ready to resume operations pending NNPCL approval
- PENGASSAN highlighted the profitability concerns delaying refinery restart despite technical readiness
- Significant upgrades enhance the refinery's asset value, marking a vital investment for Nigeria's refining capacity
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has disclosed that the old Port Harcourt Refinery has been rehabilitated to about 90% completion and could resume operations within one week if the Nigerian National Petroleum Company Limited (NNPCL) gives the go-ahead.
PENGASSAN president, Festus Osifo, made the revelation during a television interview on Tuesday, February 10, 2026, stating that the facility is technically ready to function.
Source: Facebook
According to him, the refinery can be switched on almost immediately, pending a final decision by NNPCL.
“As of today, you can start the old Port Harcourt refinery, and it will function,” Osifo said, stressing that the delay in restarting operations is not due to technical incapacity but largely commercial considerations.
PH refinery: Profitability concerns stall restart
Despite the significant progress in rehabilitation, Osifo noted that economic realities are influencing NNPCL’s decision on when to resume refining activities at the facility.
He explained that the core issue is whether refining operations would generate sufficient returns under prevailing market conditions.
According to him, the cost of crude oil feedstock could exceed the revenue generated from selling refined petroleum products.
He illustrated the concern by stating that crude worth $5 million processed at the refinery might yield products valued at about $4.5 million, creating a potential loss margin.
NNPCL, as a commercial entity, must weigh these factors carefully before restarting operations, Osifo added.
The company is expected to ensure that any resumption aligns with its profit objectives and long-term sustainability plans.
Rehabilitation funds not wasted
Amid concerns about the huge sums invested in the refinery’s overhaul, PENGASSAN maintained that the rehabilitation programme delivered tangible improvements. Osifo dismissed suggestions that the project was a waste of public funds.
He revealed that critical components of the refinery were replaced and upgraded during the process.
These include compressors, control rooms, and panels, all of which were reportedly modernised as part of the overhaul.
“The money that was thrown into the Port Harcourt refinery is not a loss,” he stated, adding that contractors completed substantial infrastructure upgrades that remain intact at the facility.
Asset value significantly improved
Beyond operational readiness, Osifo argued that the refinery’s overall asset value has increased significantly following the rehabilitation works.
He said the plant is now in a far better condition compared to its pre-rehabilitation state.
“If you value the refinery today, it will be much more valuable than the state it was in before the rehabilitation,” he said, highlighting the long-term strategic importance of the investment.
Background and current status
The Port Harcourt Refining Company was officially reopened in November 2024 as part of a phased rehabilitation programme aimed at restoring Nigeria’s domestic refining capacity.
However, operations were suspended again in May 2025 due to operational challenges.
Since then, activities at the facility have remained on hold, with stakeholders closely watching developments.
The latest update from PENGASSAN suggests that the technical groundwork has largely been completed, leaving the final restart decision in the hands of NNPCL.
For Nigeria, which continues to grapple with fuel import dependence and price volatility, the eventual restart of the Port Harcourt Refinery could mark a significant milestone in strengthening local refining capacity.
Source: UGC
PENGASSAN's update comes as the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Bayo Ojulari, declared that the refineries are unviable and that the state oil firm lacks the capacity to operate them.
Ojulari revealed that the NNPC is seeking foreign partners to operate the refineries, stating that the facilities have gulped billions of dollars in repairs.
Port Harcourt refinery continues to supply diesel despite shutdown
Legit.ng earlier reported that the Port Harcourt Refining Company was still supplying diesel despite being officially shut down.
Fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that the refinery continued to supply 349,000 litres of automotive gas oil daily, even after operations were halted.
According to the regulator’s latest figures published on its website, the diesel being evacuated was produced before the refinery was shut down by the Nigerian National Petroleum Company (NNPC) Limited on May 24, 2025.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
