NNPC warns against selling refineries as scrap

The Nigerian National Petroleum Company Limited (NNPC) has expressed reluctance to rehabilitate its state-owned refineries without a viable plan for profitability. In a Q&A session, NNPC Group Chief Executive Officer Bayo Ojulari announced the company's 2025 audited financial results, achievements, and strategic vision.

Nigeria's three state-owned refineries in Port Harcourt, Warri, and Kaduna have incurred substantial rehabilitation and maintenance costs over the years but have failed to generate consistent commercial production and profitability. Ojulari recounted lessons learned from previous rehabilitation efforts, which showed that contractors were rewarded for their work without any stake in the facility's performance post-rehabilitation.

The NNPC has also ceased using crude oil to fund rehabilitation projects that do not deliver positive commercial outcomes, instead opting to recoup costs from crude sales. Ojulari emphasized that any potential partners must share in the refinery's success, with the goal of making the Port Harcourt, Warri, and Kaduna refineries self-sustaining, profitable, and sustainable.

The GCEO warned that efforts to reposition the refineries might face opposition from those interested in acquiring them as scrap assets. He highlighted that the NNPC had vetted numerous Chinese partners, ultimately selecting only those who demonstrated credibility and commitment to the refinery's long-term success. NNPC also discovered that potential Chinese partners were operating petrochemical facilities at over 120% of their design capacity, suggesting that implementing more advanced technology could significantly enhance the refineries' performance.