Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Bayo Ojulari has announced that the company is reviewing its refinery operations, with a strategic review expected to conclude by the end of 2025.
The review may lead to changes, including the potential sale of some refineries, such as those in Port Harcourt, Warri, and Kaduna. Challenges in rehabilitating these refineries include outdated infrastructure and underperforming technologies.
The Port Harcourt refinery briefly resumed operations in November 2023 but was shut down again in May for maintenance. Ojulari also noted high oil production costs in Nigeria, ranging from $25 to $30 per barrel, partly due to significant investments in pipeline security. Despite these challenges, NNPC aims to increase Nigeria’s oil output to 1.9 million barrels per day by the end of 2025.
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