The Nigerian National Petroleum Company Limited (NNPC Ltd) has revealed that it is considering the sale of its refineries in Warri, Port Harcourt, and Kaduna as part of a broader strategic review.
Speaking in an interview with Bloomberg, NNPCL’s Group Chief Executive Officer, Bayo Ojulari, acknowledged the increasing complexity of refurbishing the aging refineries. “We’ve made substantial investments in these refineries over the years and deployed advanced technologies. However, some of these technologies have not performed as expected,” he explained.
Ojulari noted that the challenges stem partly from the deteriorated state of the refineries, which have remained dormant for extended periods. “Reviving such old infrastructure has proven more complicated than anticipated,” he said. “We are currently reviewing our entire refinery strategy and expect to conclude the review before year-end. This may lead to a shift in our approach.”
When asked directly about the potential sale of the facilities, Ojulari responded cautiously: “I can’t confirm that now, but we are not ruling it out. All options are being considered, and any decision will depend on the outcome of the ongoing review.”
Ojulari also addressed the high cost of oil production in Nigeria, stating that the current operating cost per barrel stands between $20 and $30. “This is largely due to the heavy investment we’ve had to make in securing our pipeline infrastructure. Today, we have achieved 100 percent pipeline availability, which required significant funding.”
Despite the high costs, Ojulari expressed optimism that production expenses would decline over time with improved stability and continued investment.
Looking ahead, he revealed that Nigeria aims to ramp up oil output to 1.9 million barrels per day by the end of 2025.
