NNPC in Talks With Chinese Firm Over Refinery Overhaul — Ojulari
By Naija Enquirer Staff
The Nigerian National Petroleum Company Limited (NNPC Ltd) has opened talks with a Chinese company over one of the state-owned oil firm’s refineries, as part of efforts to revive its struggling refining assets.
NNPC’s Group Chief Executive Officer, Engr. Bayo Ojulari, disclosed that the company is seeking experienced refinery operators as equity partners to revive Nigeria’s four refineries after years of losses and underperformance.
Ojulari said an internal review carried out shortly after he assumed office last April revealed that the refineries were operating at massive losses, driven by high operating costs, heavy spending on contractors, and low processing volumes.
According to him, the NNPC board has approved a strategy to bring in refinery operators with proven technical and commercial expertise rather than continuing reliance on contractors.
Ojulari said the national oil company is already in advanced discussions with several interested parties.
“I’m just coming from a meeting with one of the potential investors,” he said, without disclosing the company’s name.
“They are going to the refinery tomorrow to inspect. It’s a Chinese company that has one of the biggest petrochemical plants in China,” Ojulari added.
Nigeria has faced long-standing challenges in rehabilitating its ageing refineries, which have operated far below capacity for years, forcing Africa’s largest crude oil producer to depend heavily on imported fuel products.
The Federal Government hopes that new strategic partnerships will help reverse the trend and strengthen domestic refining capacity.
Ojulari noted that the refineries have been halted to allow time for proper assessment and restructuring options, adding that the commencement of operations at the Dangote Refinery has provided some “breathing space” for domestic fuel supply.
He stressed that the NNPC is not selling its refineries but will relinquish a portion of their equity to partners to enable the facilities to self-finance operations and improve efficiency.
