The Nigerian National Petroleum Company (NNPC) Limited was incurring losses of up to N500 million monthly from operations at the Port Harcourt refinery before rehabilitation works were suspended, the company’s Group Chief Executive Officer, Bayo Ojulari, has revealed.
Ojulari made the disclosure on Thursday, August 28, while receiving a delegation from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) led by its president, Festus Osifo, in Abuja. He attributed the refinery’s poor performance to years of neglect, which have left the facility in such a deteriorated state that addressing one issue often uncovers additional challenges.
He explained that the refinery’s original design intended for the old refinery to supply the new one, ensuring the final product met market standards. However, attempts to rehabilitate the old refinery failed to deliver expected results, hindering the company’s ability to produce premium motor spirit (PMS). Instead, mid-grade products were being produced and sold at a loss.
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“To prevent further financial drain, we decided to halt operations temporarily and seek sustainable solutions to ensure profitability and job security,” Ojulari stated.
The NNPC chief also emphasized that there was no political pressure, including from President Bola Tinubu, to take shortcuts in managing the refinery. He affirmed the President’s directive focused on sustainable and realistic outcomes.
Despite suspending current rehabilitation efforts, Ojulari reassured that NNPC remains committed to completing the refinery’s high-grade rehabilitation and has no plans to sell the facility. The company is exploring alternative strategies to restore the refinery’s viability and long-term profitability.
