Nigeria’s Refinery Rehabilitation Proves More Difficult Than Planned, Says NNPC CEO
Efforts to revive Nigeria’s state-owned oil refineries have become far more challenging than initially expected, according to Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited.
Speaking in an interview with Bloomberg on Thursday at the 9th Organisation of the Petroleum Exporting Countries (OPEC) International Seminar in Vienna, Austria, Ojulari confirmed that the NNPC is reassessing its entire refinery rehabilitation strategy and expects to conclude the review before the end of 2025.
“We’ve invested significantly in our refineries over the years and have deployed various technologies,” Ojulari explained. “However, some of these technologies have not performed as expected, and refurbishing ageing refineries that have sat idle for years has proven to be more complex than we anticipated.”
He added that the company is now reviewing every aspect of its refinery operations, with the possibility of a major strategic shift.
Read also: Port Harcourt Refinery Faces Fresh Shutdown After Resuming Crude Processing
In November last year, the NNPC announced that crude oil processing had officially resumed at the Port Harcourt refinery. However, the plant was shut down again in May for routine maintenance. Rehabilitation work is still ongoing at the Warri and Kaduna refineries.
Ojulari revealed that selling the refineries is also on the table as part of the strategic review. “To be honest, an outright sale is not off the table,” he said. “All options are open, but our final decision will depend on the outcome of this comprehensive review.”
Nigeria’s Oil Production Costs Remain High
Ojulari also highlighted that the cost of producing crude oil in Nigeria currently stands between $20 and $30 per barrel — relatively high compared to other oil-producing nations.
“Operational expenses are slightly above $20 per barrel, partly because of heavy investments to secure our oil pipelines,” he said. “Right now, we have achieved 100% pipeline availability, but this comes at a cost.”
He expressed optimism that these costs would gradually fall as the oil sector stabilises in the coming years.
Crude Production Target Remains 1.9 Million bpd
Despite the challenges, Ojulari confirmed that Nigeria is targeting crude oil production of 1.9 million barrels per day (bpd) by the end of 2025, aiming to boost national oil revenue amid persistent industry obstacles.
