NNPCL weighs overhaul, repurposing options for refineries

The Nigerian National Petroleum Company Limited has said it is assessing the operational and commercial viability of its three major refineries in Port Harcourt, Warri, and Kaduna to determine whether to overhaul or repurpose them for enhanced efficiency and profitability.

According to the company, the ongoing technical and commercial review is part of a broader plan to reposition the refineries as sustainable, revenue-generating assets that can meet Nigeria’s fuel demand and align with international operational standards.

The company disclosed this on Wednesday through an official update shared via the verified X handle of its Group Chief Executive Officer, Bayo Ojulari (@BayoOjulari).

It stated that the review marks the beginning of a new era in Nigeria’s refining sector.

“We are filled with determination and looking ahead with optimism to ensure our refineries operate effectively.

“Our drive is fuelled by the understanding that the prosperity of Nigerian states and the success of our nation will always take precedence over individual interests,” the post read in part.

According to Ojulari, NNPC Limited is currently in the “Technical and Commercial Review” phase, aimed at assessing the operational state of all three refineries and determining whether to high-grade or repurpose the facilities for optimal performance and long-term sustainability.

In simpler terms, high-grading a refinery means transforming an old, underperforming plant into a modern, efficient, and globally competitive facility — not just fixing what’s broken, but upgrading it to deliver better output and higher returns.

“Where We Are: Ongoing technical and commercial review for comprehensive assessment of all three refineries, to high-grade or repurpose as may be required to ensure optimal performance and sustainability,” he said.

Ojulari stated that the exercise marks the beginning of a new phase in NNPC’s refinery rehabilitation journey, which aims to transform the facilities into globally competitive assets capable of meeting Nigeria’s domestic fuel demand.

“We are repositioning as a commercially driven, transparent energy company serving Nigerians,” he said.

The assessment, which involves both internal and external experts, is expected to guide decisions on technology upgrades, commercial models, and future production capacities.

Ojulari revealed that the next step in the company’s refinery rehabilitation journey would involve NNPC engaging Technical Equity Partners with proven track records in operating world-class refineries.

These partnerships, he said, would be anchored on mobilising resources, technology, and expertise to implement the “high-grade repairs and upgrades” needed to restore the facilities to full productivity.

He emphasised that discussions with potential partners were ongoing and would be guided by strict commercial and technical benchmarks to guarantee value for Nigerians.

The company added that all requisite agreements would be finalised to enable mobilisation and commencement of rehabilitation work.

“The next phase is to advance Technical Partnerships and select Technical Equity Partners who have a track record of operating refineries to international standards.

“Complete requisite agreements to mobilise towards implementing high-grade or repairs as required.”

The refinery rehabilitation project, the company noted, is central to Nigeria’s National Energy Strategy, which focuses on energy security, asset optimisation, and compliance with the Petroleum Industry Act.

It said the plan was designed to ensure compliance with the Petroleum Industry Act as the supplier of last resort for petroleum products in Nigeria, while also improving the operational efficiency and profitability of its refineries.

Nigeria has struggled for decades to restore its ageing refineries despite multiple attempts and billions of dollars spent on turnaround maintenance. The combined nameplate capacity of the Port Harcourt, Warri, and Kaduna refineries is about 445,000 barrels per day, yet none have produced refined fuel at a commercial scale in over a decade.

In recent years, the Federal Government and NNPC have embarked on a phased rehabilitation programme, starting with the $1.5bn Port Harcourt refinery project, awarded in 2021 to Italy’s Tecnimont S.p.A, which has yet to achieve consistent production and supply of refined petroleum products.

Ojulari, who assumed office earlier this year, had hinted at plans to sell the refineries but backtracked after an initial review.

He said the company’s renewed focus on partnerships and performance-driven management would position it to deliver on its mandate of ensuring reliable domestic refining and reducing Nigeria’s dependence on imported fuels. PUNCH