The Nigerian National Petroleum Company Limited (NNPC) has halted operations at the recently reopened Port Harcourt Refinery, describing its brief revival as a “huge waste of resources” that was causing monumental financial losses.
Group CEO Bayo Ojulari disclosed on Wednesday that the refinery, which underwent a $1.5 billion rehabilitation before restarting in November 2024, was shut down again in May 2025 after internal reviews exposed unsustainable value destruction. Despite monthly crude allocations, the plant operated at only 50–55% utilization while incurring high operational and contractor costs.
“We were pumping cargo every month into the refineries… but the net outcome was leaking value with no clear line of sight to profitability,” Ojulari said during a session at the Nigeria International Energy Summit in Abuja. He admitted that NNPC lacks the capacity to run refineries profitably, citing structural flaws in previous contracts that focused on construction but neglected long-term operations and maintenance.
To stop further losses, NNPC is shifting to an equity partnership model, seeking experienced international refinery operators to take stakes and manage operations. Ojulari confirmed advanced talks with a major Chinese petrochemical firm, which is scheduled to conduct site inspections.
He also acknowledged the vital role of the Dangote Refinery in easing national supply pressures, stating, “Whether you love Dangote or hate him, thank God for the Dangote Refinery. It is working, it is in Nigeria.”
On production forecasts, Ojulari projected Nigeria’s oil output would reach 1.8 million barrels per day in 2026, calling the government’s earlier 2.06 million bpd benchmark overambitious.
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