NNPC CEO Acknowledges Challenges in Refinery Overhaul, Hints at Possible Sale

The Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Bayo Ojulari, has admitted that efforts to rehabilitate Nigeria’s government-owned refineries are becoming increasingly complicated. Speaking with Bloomberg during the 9th OPEC International Seminar in Vienna, Austria, Ojulari disclosed that the Port Harcourt refinery, which resumed operations in November 2023, was shut down again in May for maintenance, while rehabilitation at the Warri and Kaduna refineries is still underway.

Ojulari revealed that the NNPC is currently reassessing its refinery strategy and expects to complete the review by year-end. He noted that despite heavy investments and the introduction of new technologies, the company has encountered unexpected technical setbacks—particularly due to the aging infrastructure of the refineries.

“We’ve been challenged,” Ojulari stated. “Some technologies haven’t performed as expected, and refurbishing older, neglected facilities is proving more complex than anticipated.”

When asked if this ongoing review might result in the sale of the refineries, Ojulari responded that all options are being considered. “A sale isn’t off the table. The decision will depend on the outcome of the current review,” he said.

Ojulari also commented on the high cost of crude oil production in Nigeria, which currently ranges between $25 and $30 per barrel. He attributed the elevated costs partly to significant investments in pipeline security that have ensured full operational availability.

Looking ahead, the NNPC chief revealed that the company is targeting a daily crude output of 1.9 million barrels by the end of the year.