NNPC May Sell Refineries Amid Rehabilitation Challenges – GCEO Ojulari

The Nigerian National Petroleum Company Limited (NNPC Ltd) is considering selling off some of its state-owned refineries as it continues to face setbacks in their rehabilitation, according to the Group Chief Executive Officer, Mr. Bayo Ojulari.

Speaking with Bloomberg on Thursday during the 9th OPEC International Seminar in Vienna, Austria, Ojulari confirmed that a comprehensive strategic review of the company’s refinery operations is ongoing and should be concluded by the end of 2025.

“We’re reviewing all our refinery strategies now. We hope before the end of the year, we’ll be able to conclude that review,” Ojulari said. “That review may lead to us doing things slightly differently.”

When asked if the review could result in the sale of the refineries, he responded, “Sale is not out of the question. All the options are on the table, to be frank, but that decision will be based on the outcome of the reviews we’re doing now.”

The Nigerian government has been working to revive its long-dormant refineries in Port Harcourt, Warri, and Kaduna. The Port Harcourt refinery briefly resumed operations in November 2023 but was shut down again in May 2025 for maintenance.

Ojulari pointed to aging infrastructure and underperforming technology as key issues derailing the rehabilitation process.

“We’ve made quite a lot of investment over the last several years and brought in a lot of technologies. We’ve been challenged,” he said. “Some of those technologies have not worked as expected. And with older refineries that were neglected for years, the process has become more complicated than initially anticipated.”

On the broader oil production landscape, Ojulari highlighted Nigeria’s high operating costs, currently ranging between $25 and $30 per barrel—significantly driven by spending on securing pipelines.

“The operating cost right now in Nigeria is hovering over $20 per barrel,” he explained. “Part of that is due to the investment made in securing our pipelines. Today we have 100 per cent availability of our pipelines, and that came from significant investment.”

Despite the hurdles, Ojulari said NNPC is optimistic about increasing Nigeria’s crude oil output, setting a target of 1.9 million barrels per day by the end of 2025.