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GCEO admits multi-billion naira rehabilitation efforts failing
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“All options on the table,” including outright sale
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Port Harcourt refinery shut down again months after resumption
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr Bayo Ojulari, has revealed that the Federal Government may sell off the country’s struggling refineries as part of a major strategic overhaul.
Ojulari disclosed this during an interview with Bloomberg at the 9th OPEC International Seminar in Vienna, Austria, on Thursday.
He said the decision to sell the refineries was under serious consideration following repeated failures to revive the ageing facilities.
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“Sale Not Out of the Question”
“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. “All the options are on the table. To be frank, sale is not out of the question. But the final decision will depend on the outcome of the ongoing review.”
The revelation comes after Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna failed to return to sustained operations despite over $18 billion reportedly spent on rehabilitation projects.
Rehabilitation Setbacks and Soaring Costs
Although the Port Harcourt refinery briefly resumed operations in late 2023, it was shut down again in May 2025 for maintenance. Ojulari blamed the setback on “outdated infrastructure” and “underperforming technologies.”
“It’s like trying to modernise a 40-year-old car. Even if you install a new engine, the framework can’t handle it,” he said.
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Ojulari also addressed Nigeria’s high oil production costs, which he pegged at between $25 and $30 per barrel. He attributed this to heavy investments in pipeline security, which he claimed have now achieved 100 per cent availability across the network.
Plans to Boost Production
Despite the hurdles, the NNPC boss expressed optimism that oil output could rise to 1.9 million barrels per day by year-end, citing improved pipeline security and ongoing investments in the upstream sector.
