The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has disclosed that fixing the country’s refineries under NNPCL management has been difficult due to long term neglect of the plants.
He also alleged that the NNPCL is under attack from people who are against his reforms geared towards transforming the stated-owned oil company. Ojulari revealed this on Thursday during a delegation visit by the national body of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at the NNPC Towers in Abuja.
He stated that Nigeria’s refineries had suffered years of neglect, making them difficult to revive despite huge investments in the facilities located in Warri, Port Harcourt, and Kaduna.
“A lot of money has been spent on these refineries. However, it’s been very challenging to translate that money into profitability. Part of the reason could be described as when you have an old car, and you park the car for some time without any greasing or oiling. The refinery has been difficult to put back together because of years of neglect. And it’s been difficult when you fix one thing, the other thing is still there,” he said.
Ojulari also said that technical and commercial reviews of the refineries had been completed, with a new model being pursued.
“We’ve now completed a commercial review for the Port Harcourt refinery. And from that commercial review, we have concluded that the best way forward is for us to get a true professional refining company to join us and cooperate,” he said.
According to him, NNPC was leveraging its equity in the Dangote Petroleum Refinery to diversify supply, while ensuring no shortage of products during the transition.
He mentioned the company’s priorities since coming on board about five months ago, including reviving the nation’s refineries through the Incorporated Joint Venture model.
“Mr President doesn’t pressure me to do the wrong thing. That is why we are looking at the baseline to ensure whatever we are doing, the refineries work sustainably going forward,” Ojulari said.
“We are under attack. We will not budge to short-term pressure, as it will not be in the best interest of Nigerians. You cannot drive change without a price, and the transformation is tough,” Ojulari added.
The President of PENGASSAN, Festus Osifo, lauded NNPC management for partnering with the PENGASSAN 2025 Energy & Labour Summit, held recently in Abuja. He also acknowledged the “remarkable milestones” recorded so far under Ojulari’s leadership, including the increased crude oil output per day, and reduced crude oil theft.
“What we’ve asked over time is whether it is not possible in the refineries, for us to own a refiner who is well-experienced, to buy into the shares of the refineries, then, as government, through an NNPC, we reduce their stake in the refinery. So that we reduce a lot of political interference, at the end of the day, the continuous operation of the refinery will be a growing concern,” Osifo said.
“GCEO, we also recognise the fact that since you came on board, our pipelines have actually been working from the Forcados Pipeline to the TNP, and all our pipelines today, they’ve actually been working, and that has led to the higher production that we observe today in the industry,” he added.
