The Nigerian National Petroleum Company (NNPC) Limited lost up to ₦500 million every month on the Port Harcourt refinery before it suspended rehabilitation work, according to Group Chief Executive Officer, Bayo Ojulari.
Speaking in Abuja on Thursday, Ojulari addressed a delegation of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), led by its president, Festus Osifo.
He explained that years of neglect crippled the facility, and every repair exposed new problems.
“When you fix one thing, the other thing is still there. So, it’s been very difficult to get it,” he said.
Flawed Design And Failed Fixes
Soon after he assumed office, Ojulari ordered a rapid review of all refineries.
The exercise revealed that the Port Harcourt plant drained the company’s resources the most.
For instance, NNPC pumped about 950,000 barrels into the refinery, yet the facility processed less than 40% effectively.
Moreover, he noted that the plant operated only partially and produced mid-grade products at a loss because of its flawed design.
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“The old refinery was meant to feed into the new so the end product could meet the right market standard,” he explained.
Although NNPC tried to revive the old unit, the effort failed.
As a result, the company could not produce premium motor spirit (PMS) and instead sold mid-grade products below cost.
Confronted with this drain, Ojulari chose to halt operations.
Sustainable Path Ahead
“Rather than continue to lose, let’s quickly stop and look for a way to put the refinery into a sustainably profitable venture, but also a means of sustainable employment,” he said.
Furthermore, Ojulari clarified that President Bola Tinubu did not pressure him to cut corners.
Instead, the president directed him to find a lasting solution.
“The mandate I was given is to look at the baseline and ensure that whatever we’re doing going forward sustainably works,” he stressed.
“There’s no need for us to pretend.”
Consequently, NNPC has stopped work at the Port Harcourt refinery while it explores alternatives to make the facility viable.
Nevertheless, Ojulari reaffirmed that the company will complete a full rehabilitation and ruled out any plans to sell the plant.
