NNPC to engage private partners to rebuild refineries – Ojulari

…plan to be finalised by mid-2026

The Nigerian National Petroleum Company Limited (NNPC) plans to partner with private sector operators to rebuild and modernise its four refineries – located in Port Hacourt, Warri and Kaduna – with the aim to produce higher-quality fuels and improve operational efficiency, Bashir Bayo Ojulari, Group Chief Executive Officer said on Monday.

Ojulari said the company will engage private entities with proven refinery operations and technical expertise, with the private partners taking the lead in day-to-day operations. “Our intention is to partner with them as a business. Remember, we are not partnering as government. We are partnering as a commercial company,” he said at a press conference to announce the company’s impressive 2024 financials.

“It’s very different. It’s a commercial agreement where they bring in technical capacity, technical resources, and all of that, and we complement with the capability that we have, and we co-operate them. But they lead the operation because we want people who are there in the beginning.”

The partnerships required for the refinery upgrades are expected to be finalised by mid-2026, the GCEO disclosed, assuring that “rigorous solutions” were already underway. “By the middle of next year, we will have agreed and defined the partnerships, the technical partnerships, the new relationship, the new contracts. Everything will be in place. So, I will have a clear roadmap towards the completion of those plans,” Ojulari said.

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He emphasised that the refineries – with a combined installed capacity of about 445,000 barrels per day (bpd) require redesigns to meet international standards, producing “high-grade” fuels suitable for commercial marketing.

“Let me tell you what most people may not be aware of. If we go by the original plan, let’s just assume we just go ahead, by the time we finish the ongoing rehabilitation, the products from those refineries will be far lower standard than the specifications.

“So, when you hear me use the word high grade, it’s like we want to redesign to high grade so that the product will be of international standard, and we can commercially market it,” he said.

Ojulari highlighted the erosion of domestic technical expertise over the years, pointing to the Dangote refinery as an example of the level of capability being considered for NNPC partnerships.

“If you look at the Dangote refinery today and look at the capabilities of the people running them, a lot of foreign people are there. We may not like it, but we need to review that capability because we’ve lost the capability over time in terms of overall capacity to run,” he said.

He also emphasised that the company, now a limited liability entity, will balance commercial freedom with government oversight as it pursues high-grade, internationally marketable products.