...Ojulari: We Won’t Fund Another Rehabilitation Without Profit Pathway
…Over 50 Prospective Partners Screened Before Shortlist Of About 20
…Chinese Firms Deploy 34 Engineers For Three-Month Refinery Assessment
Daud Olatunji
The Nigerian National Petroleum Company Limited has raised the alarm over alleged moves by some interests to acquire Nigeria’s long-troubled state-owned refineries as scrap, even as the company insists that it will no longer commit resources to rehabilitation projects without a credible pathway to profitability.
The NNPC Group Chief Executive Officer, Bayo Ojulari, disclosed this on Tuesday in Abuja during a media engagement on the company’s 2025 audited financial results, achievements and strategic direction.
Ojulari said the national oil company had learnt costly lessons from previous refinery rehabilitation arrangements and would not repeat a model in which contractors were paid for repairs, operations and maintenance without having a direct stake in the commercial performance of the facilities.
Nigeria’s three state-owned refineries in Port Harcourt, Rivers State; Warri, Delta State; and Kaduna have undergone several rehabilitation and maintenance interventions over the years, with the projects attracting substantial public expenditure while the facilities struggled to achieve sustained commercial production.
The NNPC boss said the company’s new approach was designed to ensure that any fresh investment would result in refineries capable of sustaining their operations and generating profit.
“Whoever is coming with us, we have to work together to make sure that the refinery can make money. And until we find a pathway for it to make money, we’re not going to go,” Ojulari stated.
Ojulari’s warning came as the company intensifies efforts to identify technical equity partners capable of helping it modernise and commercially reposition the refineries.
He alleged that some interests were already preparing to acquire the facilities as scrap, warning that such interests could resist credible efforts to revive the plants.
“There are those who are prepared to buy these refineries as scrap, right? And they already prepared their plans, right? So, we need to watch out,” the GCEO said.
He added that a credible technical and financial solution could threaten the interests of those seeking to profit from the disposal of the facilities.
“So, if you come in with a formidable solution that is credible, you are actually going against some people who would like to do all sorts of stuff,” he said.
Ojulari said NNPC had also discontinued the practice of using crude oil to fund refinery rehabilitation arrangements that failed to generate positive commercial outcomes.
According to him, the company had previously paid contractors, financed rehabilitation and covered operations and maintenance costs without ensuring that the parties involved had sufficient incentives to deliver long-term commercial success.
“We were paying for the refinery repairs with crude oil. Last year we stopped that,” he said.
He said the decision contributed to improved financial performance recorded by the company in 2025.
“Part of the revenue you have seen in 2025 was part of the leakages that we stopped. It was the money going in that was not bringing net positive outcomes,” Ojulari added.
The GCEO disclosed that prospective Chinese partners had deployed more than 33 senior engineers to work alongside NNPC’s technical teams for over three months as part of an intrusive, on-site due diligence exercise.
He said the exercise was aimed at determining what would be required to transform the refineries into modern, commercially sustainable facilities.
According to him, the prospective partners were yet to sign a final agreement with NNPC.
He explained that the parties had signed a memorandum of understanding permitting the technical assessment, after which the prospective partners would submit their proposals before commercial and technical negotiations begin.
“We have not signed a final agreement yet,” Ojulari said.
He added that strong interest had been expressed in the Port Harcourt and Warri refineries, while Kaduna had yet to commence work under the same model.
Ojulari revealed that NNPC initially considered more than 50 potential partners before narrowing the field to about 20 during a nine-month selection process.
He said the prospective Chinese partners stood out because they were prepared to commit their own stake to the success of the refineries instead of simply seeking rehabilitation, operations or maintenance contracts.
“They were the only ones so far that aligned with our strategy and our vision, which is to build something that is self-sustaining and be ready to put in their own stake inside, not to just get a contract while we’re paying them,” he said.
The NNPC chief also disclosed that the technical assessment had raised concerns about some of the earlier rehabilitation proposals.
According to him, implementing some of the previous “quick-fix” plans could leave the refineries technologically behind modern facilities for another five to 10 years.
“By the time we are done with it, the refinery will be around another five, eight years or ten years behind technology,” he said.
Ojulari said NNPC was therefore seeking a solution that would not merely restore the old refinery configurations but introduce modern technology capable of improving their efficiency and competitiveness.
The GCEO said an NNPC delegation that visited China observed petrochemical and refining facilities operating above their original design capacities.
“What we discovered during our visit is that these guys were running at 120 per cent of design capacity,” he said.
He explained that the facilities had undergone technological optimisation and bottleneck removal that enabled them to exceed their original nameplate capacities.
Ojulari said NNPC was studying such practices to determine how they could be adapted to Nigeria’s refinery modernisation programme.
“We’re very cautiously optimistic that some of those best practices we saw with our eyes, not read in the books, that we can replicate them when we put these refineries back,” he said.
The GCEO said the ultimate objective was to have refineries that could operate independently, generate sufficient revenue and remain commercially sustainable.
He stressed that NNPC would not proceed with another major rehabilitation simply because there was pressure to return the facilities to operation.
“What we want going forward is to have a refinery that is self-sustaining, that is profitable, and is sustainable,” Ojulari said.
He said the company was determined to ensure that future investments were supported by clear commercial models.
Ojulari also disclosed that NNPC had not fixed a date for its planned Initial Public Offering.
He said the company’s immediate responsibility was to prepare the entire business for eventual listing rather than announce a date prematurely.
“Ours is to be ready. That’s what’s so different and very important,” he said.
According to him, the company would announce the IPO date once the necessary preparations and conditions were in place.
The GCEO further disclosed that NNPC was restructuring businesses that were not profitable in an effort to ensure that each unit had a clear pathway to creating value.
“Any of our businesses that are not profitable, we are restructuring them as we speak,” he said.
Ojulari said businesses that required investment would not necessarily be abandoned, provided there was a demonstrable pathway towards future value creation.
He said NNPC’s broader ambition was to evolve into a globally competitive energy company capable of attracting capital rather than continually seeking it.
“Capital should be looking for you, not you looking for capital,” he stated.
The GCEO also attributed improved relationships with banks and potential investors to greater transparency, accountability and stronger financial performance.
He said NNPC had established more banking relationships within the past year than it had in the preceding decade, adding that the company was increasingly gaining access to short-, medium- and long-term financing.
“Once we are transparent, people feel that they can invest. The capital is coming through. We’re seeing proposals coming. And this is just the beginning,” Ojulari said.
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