🛢️ NNPC CEO Bayo Ojulari Reveals Refinery Strategy Shake-Up Amid Mounting Challenges

NNPC CEO Bayo Ojulari confirms possible refinery sale and reassessment of Nigeria’s outdated facilities. Find out why Nigeria’s oil refining strategy may shift before year-end.

⚙️ NNPC CEO Acknowledges Complexities in Reviving Nigeria’s Refineries

Bayo Ojulari, Group CEO of the Nigerian National Petroleum Company (NNPC) Limited, has admitted that efforts to revamp Nigeria’s aging state-owned refineries have become more complicated than initially anticipated. Speaking with Bloomberg at the 9th OPEC International Seminar in Vienna, Ojulari hinted at a possible overhaul of the current refinery strategy.

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“We’ve brought in a lot of technologies, but some have underperformed. These refineries are old, and their condition has made the revamp more difficult than expected,” Ojulari stated.

🔧 Refinery Projects Face Delays: Port Harcourt, Warri, Kaduna

Although the Port Harcourt refinery briefly resumed crude processing on November 26, it was shut down again in May 2025 for maintenance. Meanwhile, the Warri and Kaduna facilities remain under rehabilitation, adding pressure on NNPC to reassess its strategy.

⏳ Key Status of Nigerian Refineries

📋 Strategy Review Underway: All Options on the Table

Ojulari revealed that NNPC is currently conducting a full strategy review for all its refineries, with completion expected by the end of 2025.

“We are not ruling out a potential sale,” he emphasized. “All options are on the table, but final decisions will depend on the outcome of this strategic review.”

This open stance towards possible privatization or divestment signals a pivotal shift in how Nigeria may manage its downstream oil assets moving forward.

💸 Crude Oil Production Costs in Nigeria: $25–$30 per Barrel

Ojulari also addressed the financial strain of oil production in Nigeria. He reported that operating expenses currently hover between $25 and $30 per barrel, largely due to increased security measures for oil infrastructure.

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“Pipeline security has been costly, but essential. We now have 100% pipeline availability thanks to these investments,” Ojulari noted.

📈 Production Target: NNPC Eyes 1.9 Million bpd by Year-End

Despite rising costs and refinery challenges, NNPC remains optimistic. Ojulari confirmed that Nigeria is aiming to boost crude oil output to 1.9 million barrels per day (bpd) by December 2025, signaling a push for upstream efficiency and stability.

🗣️ Related Industry Reactions and Developments

• Aliko Dangote recently criticized the government’s handling of the refineries, saying they may “never work again” despite $18 billion in historical investment.
• Niger Delta groups have called attention to political tensions and sabotage that could derail oil sector reforms.
• BINL and Ondo State have partnered to build a $15 billion private refinery, further highlighting the sector’s shift toward private investment.

🧭 What This Means for Nigeria’s Oil Sector

The NNPC refinery strategy review comes at a critical time. With aging infrastructure, soaring costs, and new private entrants like the Dangote Refinery, Nigeria must decide whether to modernize or divest its struggling assets.

• Dangote Refinery Has Enough Petrol to Meet Nigeria’s Needs, Says Aliko Dangote
• https://www.thecheernews.com/again-dangote-refinery-reduces-fuel-price-ex-depot-price-now-n820-per-litre/
• World Bank appoints Aliko Dangote to Elite Group

If NNPC opts for a refinery sale, it could unlock much-needed investment but also spark debate on government control versus privatization in the energy sector.

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