Ojulari says review marks a new era in Nigeria’s refining journey as company targets efficiency, sustainability, and global competitiveness……
The Nigerian National Petroleum Company Limited (NNPC Ltd) says it has begun a comprehensive technical and commercial assessment of its three major refineries in Port Harcourt, Warri, and Kaduna to determine whether to overhaul or repurpose them for greater efficiency and profitability.
The company said the move is part of a broader strategy to reposition Nigeria’s refining assets as sustainable, revenue-generating facilities capable of meeting the country’s domestic fuel needs while aligning with global operational standards.
The update was shared on Wednesday through the verified X (formerly Twitter) handle of the NNPC Group Chief Executive Officer, Bayo Ojulari (@BayoOjulari).
“We are filled with determination and optimism to ensure our refineries operate effectively,” Ojulari said.
“Our drive is fuelled by the understanding that the prosperity of Nigerian states and the success of our nation will always take precedence over individual interests.”
‘High-Grade or Repurpose’ Strategy
According to Ojulari, the company is currently in the Technical and Commercial Review phase, designed to evaluate the operational state of all three refineries and decide whether to high-grade them, meaning to upgrade the facilities beyond standard repairs or repurpose them for new uses.
“Where we are: ongoing technical and commercial review for a comprehensive assessment of all three refineries, to high-grade or repurpose as may be required to ensure optimal performance and sustainability,” he said.
In refining terms, high-grading means transforming outdated plants into modern, efficient facilities capable of delivering better yields, lower costs, and higher profitability, rather than simply fixing existing faults.
Ojulari noted that this stage represents a new chapter in NNPC’s refinery rehabilitation programme, emphasising that the goal is to restore full domestic refining capacity and strengthen Nigeria’s energy security.
“We are repositioning as a commercially driven, transparent energy company serving Nigerians,” he added.
Next Phase: Strategic Technical Partnerships
The NNPC chief disclosed that the next phase of the refinery rehabilitation would involve engaging Technical Equity Partners with proven expertise in operating world-class refineries.
These partnerships, he said, will focus on mobilising resources, technology, and technical know-how to deliver the “high-grade repairs and upgrades” needed to bring the refineries back to profitability.
“The next phase is to advance Technical Partnerships and select Technical Equity Partners with a track record of operating refineries to international standards,” Ojulari said.
“Requisite agreements will be finalised to mobilise towards implementing high-grade repairs and upgrades as required.”
The company said discussions with potential partners are already ongoing and are guided by strict commercial and technical benchmarks to ensure value for Nigerians.
Part of Nigeria’s Broader Energy Strategy
NNPC explained that the refinery rehabilitation effort aligns with the country’s National Energy Strategy, which focuses on energy security, asset optimisation, and compliance with the Petroleum Industry Act (PIA).
Under the Act, NNPC serves as Nigeria’s supplier of last resort for petroleum products, a role that requires consistent and efficient refinery operations.
The company said the review is being carried out by both internal and external experts, who will help determine optimal technologies, commercial models, and production capacities for the facilities.
Decades of Underperformance
Nigeria has struggled for decades to restore its refineries, which have suffered from years of neglect and mismanagement despite multiple turnaround maintenance (TAM) projects costing billions of dollars.
The combined installed capacity of the Port Harcourt, Warri, and Kaduna refineries is about 445,000 barrels per day, but none has produced refined products at commercial scale for over a decade.
In 2021, the Federal Government awarded a $1.5 billion rehabilitation contract for the Port Harcourt refinery to Tecnimont S.p.A of Italy, yet consistent production and supply have remained elusive.
A Shift From Sale to Performance
Ojulari, who assumed office earlier this year, had earlier hinted that the refineries might be sold but later clarified that the company would instead focus on performance-driven partnerships.
He said the renewed approach would prioritise sustainability, transparency, and accountability, adding that NNPC’s long-term goal is to reduce Nigeria’s reliance on imported petroleum products while delivering value to shareholders and citizens alike.
“Our focus is on sustainable performance, not just rehabilitation for rehabilitation’s sake,” Ojulari said. “We are building refineries that can stand on their own as competitive, profitable assets.”
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