NNPC warns against selling refineries as scrap

The Nigerian National Petroleum Company Limited (NNPC) has cautioned against the sale of its state-owned refineries as scrap, emphasizing the need for a profitable future. NNPC Group Chief Executive Officer Bayo Ojulari made the remarks during a media briefing in Abuja, discussing the company's 2025 audited financial results, achievements, and strategic vision.

The three refineries in Port Harcourt, Warri, and Kaduna have seen extensive rehabilitation spending over the years but have struggled to generate sustainable commercial production and profitability. Ojulari stated that previous rehabilitation models incentivized parties without providing a stake in the refinery's performance, leading to suboptimal results.

The NNPC has discontinued funding rehabilitation with crude oil, as the money spent did not yield net positive outcomes. Instead, the company is seeking technical equity partners who will share in the refinery's success. These partners have undergone a three-month on-site due diligence process, involving over 34 top engineers from potential partners, with the aim of achieving self-sustaining, profitable, and sustainable refineries.

Ojulari warned that attempts to sell the refineries as scrap could face opposition from those who prefer to acquire them for scrap value. He also highlighted the need for advanced technology in the refineries, as current plans risk leaving them technologically behind by 5-10 years.