The Port Harcourt refinery, Nigeria’s oldest petroleum processing facility, has undergone rehabilitation to approximately 90 percent completion and could resume operations within one week, according to the president of a key petroleum union. However, a final decision rests with the state oil company due to significant profitability concerns.
Festus Osifo, president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), stated the refinery is technically ready. Speaking on Channels Television’s The Morning Brief on Tuesday, Osifo asserted that the Nigerian National Petroleum Company Limited (NNPCL) could restart the plant immediately. “If they want to start it today, within the next one week, they can bring it back to life,” he said.
The primary barrier is economic viability. Osifo explained that while the rehabilitation has been extensive, the current cost of crude oil feed stock likely exceeds the market value of the refined products that would be produced. He illustrated the financial squeeze: feeding the refinery with $5 million worth of crude might yield only $4.5 million in sales, resulting in an operational loss.
Despite the pending loss, Osifo emphasized the rehabilitation investment was not wasted. Major equipment, including compressors, control rooms, and panels, was replaced, enhancing the facility’s overall value. “If you value the refinery today, it will be much more valuable than the state it was in before the rehabilitation,” he noted.
The Port Harcourt Refining Company was briefly reopened in November 2024 following a prolonged rehabilitation project. Operations were suspended again in May 2025 due to the very technical and financial challenges now described. The facility has remained offline since.
NNPCL’s decision to restart will hinge on refining margins—the difference between the cost of crude and the sale price of products. For Nigeria, which relies heavily on imported refined fuels, the long-term operational status of its domestic refineries is critical for energy security and reducing pressure on foreign exchange. The immediate prospect of the old Port Harcourt refinery returning to service now depends on NNPCL’s commercial assessment of profitability.
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