We may consider selling refineries amid rehabilitation challenges – NNPC boss Ojulari
NNPC CEO Bayo Ojulari: ‘Refinery Strategies Under Review as Nigeria Faces Complex Challenges
Bayo Ojulari, Group Chief Executive Officer (CEO) of the Nigerian National Petroleum Company (NNPC) Limited, has acknowledged the growing complexities in the effort to revamp Nigeria’s state-owned refineries.
Although the Port Harcourt refinery began processing crude oil again on November 26, it was later shut down in May for maintenance, with rehabilitation work still ongoing at the Warri and Kaduna refineries.
In an interview with Bloomberg at the 9th OPEC International Seminar in Vienna, Austria, Ojulari mentioned that NNPC is reassessing its refinery strategies, with a plan to conclude this review by the end of the year.
“We made quite a lot of investment over the last several years and brought in a lot of technologies. We’ve been challenged,” he noted. He further explained that the aging infrastructure of the refineries is presenting additional complications.
When discussing the potential outcomes of the review, Ojulari stated, “All the options are on the table…that decision will be based on the outcome of the reviews we’re doing now.” This includes the possibility of selling the refineries.
Ojulari also addressed the cost of oil production in Nigeria, revealing that operating expenses currently range between $20 and $30 per barrel. “The operating cost right now in Nigeria is hovering over $20 per barrel, which is quite high,” he commented.
He attributed part of this cost to the investments made for pipeline security, noting the importance of stability in reducing overall production costs in the future.
Source: Vanguard newspaper
