The Nigerian National Petroleum Company Limited (NNPC Ltd) has dismissed speculations surrounding the potential sale of the Port Harcourt Refining Company (PHRC), stating categorically that the plant is not for sale. Instead, the company announced its intention to secure additional funding to complete the rehabilitation of the Port Harcourt, Kaduna, and Warri refineries.
Over the past 20 years, NNPC has obtained approval for over N16 trillion in funding for the turnaround maintenance of the three refineries. The company is now pursuing more advanced technical collaborations to fast-track the ongoing rehabilitation of the Port Harcourt facility.
During a recent town hall meeting at the NNPC Towers in Abuja, Group Chief Executive Officer, Bayo Ojulari, clarified the company’s position. His statement put an end to widespread rumours prompted by comments he made earlier at the 2025 OPEC Seminar in Vienna, where he had suggested that “all options are on the table” for Nigeria’s refining assets.
A statement released by NNPC on Wednesday emphasised: “The Nigerian National Petroleum Company Limited has ruled out the sale of the Port Harcourt Refining Company, reiterating its commitment to completing a thorough rehabilitation and maintaining ownership of the facility.”
Ojulari described any move to sell PHRC as “ill-advised and commercially unwise,” asserting that the current strategy is the result of careful technical and financial evaluations of all three state-run refineries. He noted that initial plans to operate the refinery before full rehabilitation were poorly conceived and would have led to value loss.
He explained that although there has been progress, the rehabilitation process calls for deeper technical partnerships to ensure high-quality completion of the Port Harcourt project. Therefore, divesting the asset at this point would only compound existing challenges.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the decision, noting that the refinery’s rehabilitation is already 90% complete. Speaking in a phone interview, IPMAN’s National Publicity Secretary, Chinedu Ukadike, argued against any attempt to sell the facility after so much financial and technical investment.
Ukadike questioned the rationale behind seeking new technical partners when Maire Tecnimont, the original contractor, had already completed the bulk of the work. He blamed the delays on outstanding payments to Tecnimont, urging the government to settle its obligations so the project can be finalised and the refinery made operational.
“If Tecnimont has built the refinery to this stage, why bring in new partners? Just pay them and let them finish the job,” he insisted. “Any outstanding technical challenges should be handled by the original contractor.”
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Energy analyst Kelvin Emmanuel offered a more sceptical perspective. Posting on his X handle, he raised questions about the source of funds for the continued rehabilitation. He also highlighted the lack of accountability for the $2.9 billion reportedly spent over the past four years on the project.
The Port Harcourt Refinery consists of two units: an older plant with a 60,000 barrels-per-day capacity and a newer one with a 150,000 bpd capacity, totalling 210,000 bpd. However, the facility has not operated optimally in over 20 years.
The refinery was shut down in March 2019 for major repairs. Italian engineering firm Maire Tecnimont was contracted for the work, with Eni acting as a technical adviser. In 2021, following Federal Executive Council approval, NNPC commenced a $1.5 billion rehabilitation project. By December 2023, mechanical work and flare startup had been completed.
The refinery briefly resumed operations in November 2024 but was shut down again in May 2025. Ojulari’s update during the town hall was met with approval from staff, who appreciated the transparency and renewed direction.
The meeting also served as a platform for company executives across all business divisions, upstream, downstream, finance, gas, power, and new energy to present performance updates and identify areas needing improvement.
With a focus on accountability and strategic progress, NNPC reiterated its role as a steward of Nigeria’s vital energy assets. The decision to retain ownership of PHRC aligns with the Federal Government’s broader energy security agenda and underscores NNPC’s commitment to national interests.
Staff responses to the town hall reflected optimism, with many describing the session as “transformative” and aligned with a performance-driven culture.
Ojulari concluded, “NNPC Ltd remains committed to operating as a transparent, performance-focused, and commercially viable national energy company. We are accountable to Nigerians, our primary stakeholder and will continue to act in their best interest.”
