NNPC is weighing the possibility of selling some of its refineries as it struggles with ongoing rehabilitation efforts.
At the 9th OPEC International Seminar in Vienna, the Group CEO, Bayo Ojulari, told Bloomberg that a comprehensive review of the company’s refinery operations is underway and will be finalized before the end of the year.
He said the review could lead to a shift in strategy, including potential changes to how NNPC manages its refineries.
When asked whether a sale is on the table, Ojulari confirmed that the company is open to all options, including divestment.
He emphasized that NNPC will base its final decision on the outcome of the ongoing evaluation.
Nigeria has been working to revive its dormant state-run refineries in Port Harcourt, Warri, and Kaduna.
Although Port Harcourt refinery briefly resumed operations in November 2023, it was shut down again in May for maintenance.
Ojulari cited outdated infrastructure and underperforming technologies as major hurdles in the rehabilitation process.
He explained that NNPC has invested heavily in upgrades and new technologies, but some systems have failed to meet expectations.
He added that bringing old, neglected refineries back online has proven more complex than anticipated.
On production costs, NNPC revealed that operating expenses remain high—between $25 and $30 per barrel—due to heavy spending on pipeline security.
Ojulari said investments in securing pipeline infrastructure have ensured 100% availability, but at a steep cost.
He noted that with improved security and stability, those costs are expected to decline over time.
Despite these setbacks, NNPC remains focused on boosting Nigeria’s oil output to 1.9 million barrels per day by year-end.
source: punchng.com
African Energy Council