The CEO of the Nigerian National Petroleum Company Limited(NNPC), Bayo Ojulari, has revealed that the company is considering selling some of its refineries as it battles with challenges in their rehabilitation and operations.
Ojulari stated that a strategic assessment of NNPC’s refinery operations is in progress and should be completed by the end of the year in an interview with Bloomberg on Thursday at the 9th OPEC International Seminar in Vienna, Austria.
He said, “So 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.”
When asked if that could include putting the refineries up for sale, Ojulari said, “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.”
Nigeria has been attempting to revive its state-owned refineries, which have been idle for a long time, including those in Kaduna, Warri, and Port Harcourt.
The Port Harcourt refinery was shut down once more in May for repairs, despite briefly resuming operations in November 2023, to which Ojulari blamed underperforming technologies and antiquated infrastructure for some of the setbacks.
“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.
“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,” he said.
He also highlighted the high cost of oil production in Nigeria, stating that significant expenditures on pipeline security are partially to blame for operating costs, which range from $25 to $30 per barrel.
Ojulari stated that the NNPC aims to raise Nigeria’s oil production to 1.9 million barrels per day by the end of the year, notwithstanding the difficulties.
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