The Digest:
NNPC CEO Bayo Ojulari disclosed that the rehabilitation of Nigeria's refineries has become increasingly difficult, prompting the company to consider selling them. Despite heavy investments, the Port Harcourt, Warri, and Kaduna refineries remain non-operational.
Key Points:
- NNPC CEO Bayo Ojulari hints at potential refinery sale due to stalled rehabilitation efforts.
- Refineries have been inactive for years, with operations briefly resuming in Port Harcourt in 2023.
- $18 billion invested, but the refineries remain non-operational.
- Rehabilitation efforts have proven complex, with outdated infrastructure hindering progress.
- Ojulari emphasized that all options, including sale, are under review.
- Operating costs for crude oil production in Nigeria are currently high, ranging from $20 to $30 per barrel.
- Ojulari stated that a decision regarding the sale will be made by the end of the year.
NNPC reviews its refinery strategy amid stalled rehabilitation, with the sale of refineries being considered as an option. The outcome of this review will determine the future of Nigeria’s state-owned refineries.
Sources: Bloomberg, NNPC Official Statements
