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NNPC May Sell Refineries as Rehabilitation Efforts Stall — CEO Bayo Ojulari
Bayo Ojulari, Group CEO of the Nigerian National Petroleum Company (NNPC) Limited, has revealed that the ongoing rehabilitation of Nigeria’s state-owned refineries is becoming increasingly complex, prompting the company to consider a possible sale.
Speaking in an interview with Bloomberg on the sidelines of the 9th OPEC International Seminar in Vienna, Austria, Ojulari said NNPC is currently reviewing its refinery strategy and expects to conclude the process by the end of the year.
“We’ve made significant investments over the years and brought in a lot of technology. However, some of these technologies haven’t delivered as expected,” he said. “Refurbishing old refineries that have been idle for years has proven to be more complicated than anticipated.”
He noted that while the Port Harcourt refinery briefly resumed operations in November 2023 before shutting down again in May for maintenance, rehabilitation work is still ongoing at the Warri and Kaduna facilities.
Ojulari said all options are being considered, including the possibility of selling the refineries. “A sale is not off the table. We’re keeping all options open, but any final decision will depend on the outcome of our current review,” he explained.
The NNPC chief also spoke on the high cost of crude oil production in Nigeria, noting that operating costs currently range between $20 and $30 per barrel.
“A significant part of this cost comes from the heavy investments we’ve had to make in securing our pipeline infrastructure. Today, we have 100 percent pipeline availability, which didn’t come cheap,” he added.