NNPC Moves To Seal Refinery Deal To Address Fuel Challenges

The Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mr. Bayo Ojulari, has disclosed plans to partner with a professional refinery operator as part of efforts to resolve Nigeria’s protracted refining challenges. Ojulari made this known on Thursday while hosting members of the National Executive Council (NEC) of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at the NNPC Towers in Abuja.

He explained that NNPC had completed technical assessments of the country’s three refineries and recently concluded a commercial review of the Port Harcourt Refinery, which underscored the need for a sustainable business model.

“The solution you are proposing is the same one we are working on. We have now completed the technical review of the three refineries, and from the commercial review of Port Harcourt, it’s clear we need to bring in a true professional refinery company to partner with us,” Ojulari said.

He noted that years of neglect and poor maintenance had rendered the refineries commercially unviable, resulting in losses of between ₦300 million and ₦500 million monthly.

“We were pumping around 50,000 barrels of crude daily into the refinery but getting less than 40 percent output. Rather than continue to incur losses, we halted operations to pursue a viable, profitable model,” he explained.

Ojulari stressed that President Bola Tinubu had not pressured NNPC to resume refinery operations prematurely, noting that all decisions taken so far were geared towards long-term sustainability.

He also addressed recent protests and alleged moves to oust him, describing them as distractions.

“There is a formidable plan to remove me, and staff morale has taken a hit. But we remain focused on delivering our mandate,” he said.

PENGASSAN President, Festus Osifo, commended the NNPC leadership for improved pipeline performance and higher oil output since Ojulari’s appointment. He assured the union’s support in achieving energy stability.

“We are currently producing about 1.8 million barrels per day, and our target is 2.6 million barrels by 2026 by reviving non-producing fields,” Osifo stated.