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NNPC Boss Hints at Possible Sale of Refineries Amid Rising Challenges
Ojulari says review underway, revamp plans growing tougher by the day

Bayo Ojulari, the Group CEO of Nigerian National Petroleum Company (NNPC) Limited, has revealed that Nigeria’s much-anticipated refinery overhaul is proving more complicated than expected — and now, even selling the refineries is officially "on the table."

Speaking to Bloomberg during the 9th OPEC International Seminar in Vienna, Austria, Ojulari disclosed that the NNPC is actively reassessing its refinery strategy and hopes to conclude its review before the end of the year.

“We’ve invested significantly over the years, brought in modern technologies, but we’ve faced major challenges,” Ojulari said. “Some of these technologies haven’t delivered as expected, and dealing with old, neglected infrastructure has added a layer of complexity we didn’t fully anticipate.”

While the Port Harcourt refinery briefly resumed crude oil processing in November 2023 before shutting down again in May for maintenance, the Warri and Kaduna refineries are still undergoing rehabilitation. Now, NNPC is weighing all its options — including a potential sale.

“Selling is not off the table,” Ojulari admitted. “Every option is open. But we’ll base our final decision on the outcome of this ongoing strategic review.”

Upstream Woes: Cost of Production Still High
Ojulari also addressed Nigeria’s high upstream production costs, revealing that operational expenses in the oil sector remain steep — ranging from $20 to $30 per barrel.

“A big part of that is due to the hefty investments we’ve made in securing our pipeline infrastructure,” he explained. “We now have 100% pipeline availability, but that came at a cost. We’re hopeful that with more stability, these costs will come down over time.”

Despite the challenges, NNPC is pushing forward. The company aims to ramp up oil production to 1.9 million barrels per day by the end of the year.

By Haruna Yakubu Haruna