The Nigerian National Petroleum Company Limited (NNPC) says it has no plans to sell off the Port Harcourt Refining Company (PHRC), reaffirming its commitment to completing the high-grade rehabilitation and retention of the plant.
Bayo Ojulari, the group chief executive officer (GCEO) of the NNPC, announced the organisation’s decision during a company-wide townhall meeting at the national oil firm’s headquarters in Abuja.
The GCEO’s remarks come amid rising concerns over the future of the NNPC’s crude oil refining assets.
On June 11, Ojulari said the company was considering the sale of state-owned refineries due to complications in repairing the facilities.
However, speaking at the town hall meeting, the NNPC chief ruled out selling the asset.
“The Nigerian National Petroleum Company Limited (NNPC) Ltd has officially ruled out the sale of the Port Harcourt Refining Company, reaffirming its commitment to completing high-grade rehabilitation and retention of the plant,” the statement reads.
Ojulari said the position of the national oil company is not a shift, but informed by ongoing detailed technical and financial reviews of the Port Harcourt, Kaduna, and Warri refineries.
“The ongoing review indicates that the earlier decision to operate the Port Harcourt refinery prior to full completion of its rehabilitation was ill-informed and sub-commercial,” the statement added.
“Although progress is being made on all three refineries, the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery. Thus, selling is highly unlikely as it would lead to further value erosion.”
Ojulari said the NNPC will continue to reposition itself as a commercially driven, professionally managed national energy company, grounded in transparency, focused on performance, and unwavering in its responsibility to its number one stakeholder group, Nigerians.
On May 24, the NNPC shut down the PHRC for maintenance.
The PHRC operates two refineries, the old plant with a capacity of 60,000 barrels per stream day (bpsd) and a new facility with 150,000 bpsd, bringing the refinery’s combined crude processing capacity to 210,000 bpsd.
