The Petroleum and Natural Gas Senior Staff Association of Nigeria has confirmed that the Port Harcourt refinery, with a production capacity of 60,000 barrels per day, is functioning and is currently producing various refined petroleum products, including diesel, kerosene, and petrol.
This development was confirmed by the PENGASSAN National President, Festus Osifo, at the association’s National Executive Council meeting on Tuesday in Abuja.
Osifo also stated that the resumption of operations at the refinery would not reduce petrol prices.
There have been serious contentions over the operation of the newly rehabilitated refinery after its much-celebrated commencement of production.
Providing clarifications after receiving feedback from PENGASSAN members who work at the refinery, Osifo confirmed that the facility is operational but requires additional maintenance to be completed.
He said the association, in collaboration with NUPENG, is a member of the steering committee and is fully aware of everything going on in the facility.
Osifo also said the operation of the refinery would not reduce petrol prices, emphasising that the current value of the naira against the dollar is a major factor in determining the price of refined products.
“The confirmation I have today is that the refinery is working,” Osifo stated, as he reeled out the production processes at the plant.
The PENGASSAN president added, “The processes are not really much of our concern, as they don’t affect the man on the street. But what people want to know is if we are getting PMS from the refinery and the answer is yes. We are still pushing that the new one comes onstream and then the Warri, Port Harcourt refinery begins operation.
“The operation of these refineries will create jobs and boost the economy, but overall, will it bring down the cost of PMS (petrol), AGO (diesel), and DPK (kerosene)? The answer is no. The reason is because of the weakness of our currency.
“So, the greatest challenge is the weakness of our naira, and we have advocated this over and over again. With the naira exchanging at 1 dollar to N1,700, the cost of goods in the market is going to be high. So what has made those costs high today is our exchange rate.”
Union tackles oil firms
Osifo also stated that the association is preparing for a face-off with oil companies that are prioritising expatriates for job opportunities while neglecting to hire qualified Nigerians.
He said the growing trend by companies to employ foreigners, mainly Indians, is contrary to the local content regulations, which seek to increase local content participation to 70 per cent by 2027.
He stressed that many companies have abused the expatriates quota outlined by the government, fuelling unrest and resentment among Nigerians who feel excluded from opportunities in their industry.
He said, “A pressing concern is the high number of expatriates in Nigeria’s oil and gas industry, mainly from India. While skilled foreign workers contribute to economic development, the current situation demands attention. We have been calling names. We are not shying away from calling names. We called out a company called Indorama and others and the issue was fixed in the past.”
