The Nigerian National Petroleum Company Limited (NNPC) may sell off some of its refineries as part of a broader strategy to address ongoing challenges in their rehabilitation, the Group Chief Executive Officer, Bayo Ojulari, has said.
Ojulari made the disclosure during an interview on Thursday at the 9th OPEC International Seminar held in Vienna, Austria. He said the company is currently conducting a strategic review of its refinery operations, with all options , including potential sales, being considered.
“We’re reviewing all our refinery strategies now. We hope to conclude that review before the end of the year,” he stated. “That review may lead to us doing things slightly differently… sale is not out of the question. All options are on the table.”
Nigeria has been working to revive its long-moribund state-owned refineries in Port Harcourt, Warri, and Kaduna. Although the Port Harcourt refinery resumed operations briefly in November 2023, it was shut down again in May 2024 for maintenance.
Ojulari attributed the recurring setbacks to outdated infrastructure and underperforming technologies.
“We’ve made significant investments in recent years and brought in new technologies, but some of them haven’t delivered the expected results,” he said. “When dealing with aged refineries that have been dormant for years, the rehabilitation process becomes more complicated.”
He also highlighted the country’s high oil production costs, noting that operating expenses currently range between $25 and $30 per barrel. A significant portion of that cost, he explained, stems from security-related spending to ensure the protection of oil infrastructure.
“Our pipeline network now operates at 100 per cent availability, a result of major security investments. However, this has contributed to increased production costs,” he said. “We expect these costs to decline over time as the industry stabilizes.”
Despite the hurdles, Ojulari expressed optimism about the country’s production outlook, saying NNPC aims to raise Nigeria’s crude oil output to 1.9 million barrels per day by the end of 2025.
