In a major shift that might reshape Nigeria’s oil refining sector, the Nigerian Nationwide Petroleum Firm Restricted (NNPC Ltd) is weighing the potential for promoting off a few of its state-owned refineries, in accordance with Group CEO Bayo Ojulari.
Talking Thursday throughout an interview with Bloomberg on the ninth OPEC Worldwide Seminar, Ojulari confirmed {that a} strategic evaluation is presently underway to evaluate the way forward for the corporate’s ailing refineries. The result of that evaluation, he mentioned, may embrace potential divestments.
“We’re reviewing all our refinery methods now. We hope earlier than the tip of the yr, we’ll be capable to conclude that evaluation,” Ojulari mentioned.
“That evaluation could result in us doing issues barely otherwise.”
When pressed on whether or not a sale was on the desk, he responded candidly:
“Sale will not be out of the query. All choices are on the desk.”
The remarks come as NNPC continues its uphill battle to rehabilitate its getting older refining infrastructure, notably amenities in Port Harcourt, Warri, and Kaduna.
Although the Port Harcourt refinery briefly restarted operations in late 2023, it was shut down once more this Might for upkeep.
Ojulari blamed the persistent setbacks on outdated equipment and underperforming applied sciences introduced in throughout current improve efforts.
“We’ve made various funding over the past a number of years,” he mentioned.
“A few of these applied sciences haven’t labored as we anticipated. Refining an previous refinery that’s been dormant for years has confirmed extra complicated than anticipated.”
The NNPC boss additionally highlighted the {financial} pressures weighing down Nigeria’s crude oil manufacturing.
He pegged the nation’s present working price at between $25 and $30 per barrel—among the many highest globally.
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A good portion of those bills, Ojulari revealed, goes into securing pipeline infrastructure to fight vandalism and theft.
“Immediately we have now 100 per cent pipeline availability. That got here out of great funding in safety,” he famous.
“With time and stability, we imagine that price will come down.”
Regardless of the hurdles, Ojulari maintained an optimistic outlook, projecting that Nigeria’s crude oil manufacturing may attain 1.9 million barrels per day earlier than yr’s finish.
NNPC’s potential resolution to dump refineries marks a pivotal second within the nation’s decades-long wrestle to scale back reliance on imported petroleum merchandise.
Previous efforts to revive the state-run amenities have usually faltered attributable to corruption, neglect, and lack of technical experience.
Whether or not this evaluation results in outright gross sales, public-private partnerships, or full overhauls stays to be seen.
However for now, the door to privatization is open.
