The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Mr. Bashir Bayo Ojulari, has revealed that the company is considering selling some of its refineries as it continues to face challenges in their rehabilitation.
Speaking during an interview with Bloomberg at the 9th OPEC International Seminar in Vienna, Austria, Ojulari said a comprehensive review of NNPC’s refinery operations is currently underway and expected to be completed before the end of 2025.
“We’re reviewing all our refinery strategies now,” he said. “We hope to conclude the review before the end of the year. That review may lead us to take a different approach.”
When asked if the review could lead to selling the refineries, Ojulari responded, “Sale is not off the table. All options are being considered. The final decision will depend on the outcome of our ongoing review.”
Nigeria has long struggled to revive its state-owned refineries located in Port Harcourt, Warri, and Kaduna. Although the Port Harcourt refinery briefly resumed operations in November 2023, it was shut down again in May 2024 for further maintenance.
Ojulari cited aging infrastructure and underperforming technologies as key obstacles.
“We’ve invested heavily over the past few years, bringing in new technologies,” he said. “Unfortunately, some of these haven’t performed as expected. Refurbishing old refineries that have been inactive for years is proving more complex than anticipated.”
Ojulari also addressed the high cost of oil production in Nigeria, estimating that operating costs range from $25 to $30 per barrel. A major contributor, he said, is the significant spending on pipeline security.
“Our operating cost is over $20 per barrel, which is quite high. Much of that is due to the investment needed to secure our pipelines. Today, we have 100% availability, thanks to those efforts. We hope these costs will decline over time with increased stability.”
Despite these hurdles, the NNPC boss said the company is aiming to increase Nigeria’s oil output to 1.9 million barrels per day by the end of the year.
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