The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has confirmed that the Port Harcourt refinery is operational, with a production capacity of 60,000 barrels per day. The refinery is currently producing refined petroleum products, including diesel, kerosene, and petrol, according to PENGASSAN National President, Festus Osifo, during the association’s National Executive Council meeting on Tuesday in Abuja.
Osifo clarified that despite the refinery’s resumption of operations, it would not lead to a reduction in petrol prices. He explained that the refinery, while functioning, still requires additional maintenance to be fully operational. Osifo emphasized that the association, along with the National Union of Petroleum and Natural Gas Workers (NUPENG), is part of the steering committee and is closely monitoring the facility’s activities.
While acknowledging the refinery’s operational status, Osifo pointed out that the value of the naira against the dollar is a major determinant in the price of refined products. “The greatest challenge is the weakness of our naira. With the naira exchanging at 1 dollar to N1,700, the cost of goods in the market is going to be high,” he stated. Despite the refinery’s production of PMS (petrol), AGO (diesel), and DPK (kerosene), Osifo made it clear that the ongoing challenges with the currency would prevent a reduction in fuel prices.
Osifo also addressed concerns about oil companies favoring expatriates over qualified Nigerians for job opportunities, a trend he said is contrary to the government’s local content regulations. He criticized oil firms, particularly those employing a high number of foreign workers from India, for neglecting to hire local talent in violation of the plan to increase local content participation to 70% by 2027.
“We have been calling names. We are not shying away from calling names,” Osifo said, referencing past efforts to address the issue, including successfully pressuring companies like Indorama to correct their practices. He expressed concerns that the growing number of expatriates in the sector is causing unrest and resentment among Nigerians who feel sidelined in their own industry.
As the Port Harcourt refinery continues its operations, the focus remains on addressing both the operational challenges and broader issues such as the exchange rate and local content in Nigeria’s oil and gas sector.
