The Nigerian National Petroleum Company Limited, NNPC, has officially debunked speculation over a potential sale of the Port Harcourt Refining Company, declaring instead its firm commitment to completing the ongoing rehabilitation of the state-owned facility.
Group Chief Executive Officer of NNPC Ltd, Mr. Bashir Bayo Ojulari, made this known during a company-wide town hall meeting held on Tuesday at the NNPC Towers in Abuja. His comments follow mounting public speculation over the refinery’s future, especially after his recent remarks at the OPEC Seminar in Vienna, where he stated that “all options are on the table” regarding Nigeria’s refineries.
However, in a clarifying statement issued by the company on Wednesday, Ojulari described the idea of selling the Port Harcourt plant as both “ill-advised” and “sub-commercial,” pointing out that such a move would result in further erosion of national assets and strategic value.
“The Nigerian National Petroleum Company Limited has officially ruled out the sale of the Port Harcourt Refining Company, reaffirming its commitment to completing high-grade rehabilitation and retention of the plant,” the statement read.
The statement noted that NNPC is conducting ongoing technical and financial reviews of the nation’s three major refineries—Port Harcourt, Kaduna, and Warri—as part of a broader strategic overhaul of its downstream assets.
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Ojulari clarified that the company’s current stance does not represent a policy reversal. Instead, it reflects fresh insights from internal audits and assessments, which suggest that earlier decisions to operate the Port Harcourt refinery before completing full rehabilitation were flawed and commercially unviable.
“Although progress is being made on all three refineries, the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery,” the NNPC boss said.
He emphasized that divesting from the Port Harcourt refinery at this stage would undermine national interests and contradict the company’s vision for energy independence and asset optimization.
“Selling is highly unlikely as it would lead to further value erosion,” he added.
The Port Harcourt Refining Company, one of Nigeria’s oldest and most critical refining assets, has been undergoing phased rehabilitation since the federal government awarded a $1.5 billion contract in 2021 for its full turnaround maintenance. The plant, with a combined processing capacity of 210,000 barrels per day, has operated below capacity for years due to neglect, mismanagement, and underinvestment.
In recent months, growing concerns from stakeholders and industry observers were triggered by NNPC’s silence on delays and Ojulari’s comment in Vienna suggesting openness to selling underperforming assets. That remark fueled speculation that the Port Harcourt refinery could be privatized or offloaded.
Punch Newspaper
