The Nigerian National Petroleum Company Limited (NNPC Ltd) has reaffirmed its commitment to completing the rehabilitation of the Port Harcourt Refining Company (PHRC) and the other two refineries it operates, while officially ruling out any plans to sell the Port Harcourt refinery.
This announcement, made by NNPC’s Group Chief Executive Officer, Bayo Ojulari, during a company-wide town hall meeting at the NNPC Towers in Abuja, ends weeks of speculation about the future of the country’s most prominent state-owned refining asset.
“The Nigerian National Petroleum Company Limited 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,” a company statement read on Wednesday.
Ojulari described any notion of selling the PHRC as “ill-advised and sub-commercial,” clarifying that the company’s position is informed by detailed technical and financial reviews of the Port Harcourt, Kaduna, and Warri refineries. He emphasised that selling the refinery would lead to further value erosion.
The CEO’s remarks come amid public concern following his earlier statement at the 2025 OPEC Seminar in Vienna, where he said “all options are on the table” regarding the refineries’ future. The comments coincided with statements from Dangote Group President Alhaji Aliko Dangote expressing doubts about the viability of Nigeria’s state-owned refineries, which triggered rumours about a possible sale.
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According to NNPC, over N16 trillion was approved between 2002 and 2012 for turnaround maintenance across the three refineries. The company is now actively exploring advanced technical partnerships as part of a renewed strategy to accelerate the PHRC’s rehabilitation.
“The ongoing review indicates that the earlier decision to operate the Port Harcourt refinery before full completion of its rehabilitation was ill-informed and sub-commercial,” the statement added.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the decision not to sell PHRC, highlighting that the project is already 90 per cent completed and should be finished by the original contractors.
National Publicity Secretary of IPMAN, Chinedu Ukadike, told NEW DAILY PRIME that selling the refinery now would be illogical given the level of progress. However, he questioned why NNPC is seeking new technical partners instead of paying the original contractor, Italy’s Maire Tecnimont, which has been responsible for the project.
“The challenge delaying the project is that the Federal Government has not paid the company their money. So they should get paid, finish the job, and hand over the refinery,” Ukadike said.
He urged the government to prioritise timely completion and operation of the plant rather than exploring alternatives that could cause further delays.
An energy analyst, Kelvin Emmanuel, expressed scepticism about NNPC’s plans to raise additional funds for rehabilitation. In a post on his official X account, he questioned the source of the funds and raised concerns over the unaccounted $2.9 billion borrowed for rehabilitation over the past four years.
The Port Harcourt Refinery consists of two units: the older plant with a refining capacity of 60,000 barrels per day (bpd), and a newer plant capable of 150,000 bpd, giving a total capacity of 210,000 bpd. However, the refinery has not operated at full capacity for over two decades.
The plant was shut down in March 2019 for repairs, with Maire Tecnimont contracted for rehabilitation and oil major Eni appointed as technical adviser. The government approved $1.5 billion for the project in 2021, and mechanical completion was announced in December 2023.
Though production commenced in November 2024, the refinery was shut down again in May 2025 for further work.
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The town hall meeting also saw presentations from Executive Vice Presidents across various business units, highlighting operational achievements, ongoing reforms, and challenges ahead. Staff attendees described the event as “reassuring,” “transformational,” and “sustainable,” reflecting optimism about the company’s future direction.
NNPC Ltd reaffirmed its goal to be a commercially driven, professionally managed national energy company, with transparency and performance at its core.
“NNPC Ltd 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,” Ojulari concluded.
