NNPCL: Revamping Refineries More Difficult Than Expected, Sale Not Ruled Out

The Nigerian National Petroleum Company (NNPC) Limited is reassessing its refinery strategy and may consider selling the state-owned facilities as their rehabilitation becomes increasingly complex, says Bayo Ojulari, group chief executive officer of the company.

Speaking during an interview with Bloomberg at the 9th OPEC International Seminar in Vienna, Austria, Ojulari said significant investments have already been made, but progress has been hampered by unforeseen technical challenges.

“So refineries, we made quite a lot of investment over the last several years and brought in a lot of technologies. We’ve been challenged,” he said. “Some of those technologies have not worked as we expected so far. But also, as you know, when you’re refining a very old refinery that has been abandoned for some time, what we’re finding is that it’s becoming a little bit more complicated.”

NNPC officially restarted crude oil processing at the Port Harcourt refinery in November 2023, but it was shut down again in May 2024 for maintenance. The Warri and Kaduna refineries are still under rehabilitation.

“We’re reviewing all our refinery strategies now. We hope before the end of the year, we’ll be able to conclude that review. That review may lead to us doing things slightly differently,” Ojulari said.

Although a final decision has not been made, the NNPC boss said the sale of refineries remains an option.

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“But what we’re saying is that sale is not out of the question. All the options are on the table, to be frank, but that decision will be based on the outcome of the reviews we’re doing now,” he added.

Ojulari also noted that Nigeria’s operating cost for oil production remains high at $20–$30 per barrel due to ongoing security investments.