Bayo Ojulari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, has revealed that the federal government may consider selling Nigeria’s state-owned refineries due to ongoing challenges with their rehabilitation.

Ojulari made this disclosure during an interview with Bloomberg at the 9th OPEC International Seminar held in Vienna, Austria. He noted that although the Port Harcourt refinery resumed crude oil processing on November 26, it was shut down again in May 2025 for maintenance. Meanwhile, repair works at both Warri and Kaduna refineries are still ongoing.

Speaking on the situation, Ojulari said:

“We’ve made significant investments over the years and introduced various technologies. However, some of these technologies haven’t performed as expected. Refurbishing aging and neglected refineries has proven more complex than anticipated.”

He added that NNPC is currently reassessing its refinery rehabilitation strategy and expects to conclude the review by the end of 2025.

When asked if the review could lead to refinery privatization, Ojulari said:

• “A sale is not off the table. All options are being considered. The final decision will depend on the outcome of our ongoing review.”

High Oil Production Costs in Nigeria

Ojulari also discussed the cost of crude oil production in Nigeria, revealing that operating costs range between $20 and $30 per barrel.

He explained that the high costs are partly due to the heavy investments made in pipeline security, which has led to a 100% availability rate for pipelines nationwide.

HEED: Follow us on Instagram or any other social media platform and get the most reliable news directly in your favorite app!

“With improved stability and reduced security threats, we expect these costs to drop in the future,” he said.

Nigeria Targets 1.9 Million Barrels Per Day

Looking ahead, the NNPC boss stated that the company is working to boost Nigeria’s daily oil production to 1.9 million barrels per day (bpd) before the end of the year.

This announcement comes as stakeholders continue to debate the future of Nigeria’s refineries and seek solutions to reduce production costs while maximizing output.

NaijaBlogDaily# is visible on all social media platforms, bringing you the latest Nigerian news on politics, economy, entertainment, and celebrity updates. Including sports across Nigeria and beyond…

Keep visiting and following up with us on any social media platform you are using to keep you updated 💯
Remember (information brings knowledge and power).
STAY TUNED!!!