Sopuruchi Onwuka
The new management of the Nigerian National Petroleum Company Limited (NNPC) Limited has restated it’s resolve to drive the protracted revamp of the nation’s crude oil refineries to conclusion.
Group Chief Executive Officer (GCEO), Bashir Bayo Ojulari, notified jubilant workers of the national oil company that selling off the refineries after huge investments in rehabilitation attempts would amount to huge losses.
The Oracle reports that the rehabilitation of the country’s three refining companies managed by the NNPC Limited has spanned across 11 years beginning from local capacity deployment attempts in 2014.
Since then, different administrations of the federal government and different management committees of the NNPC have made numerous deep pocket attempts at revamping the four plants belongings to three refining companies located in Port Harcourt, Warri and Kaduna.
The double plant Port Harcourt refinery holds potential for processing 210,000 barrels of crude oil per day.
The single plant Warri Refinery has nameplate capacity for 125,000 barrels per day; and the Kaduna Refinery holds capacity for 110,000 barrels per day.
Earlier attempts by the government to sell the plants to private players in 2007 was resisted by the NNPC, leading to a botched privatization program.
With failure of NNPC Limited to revamp the plants since then, pressure has continued to mount on government to divest operating stake to more efficient private operators.
Thus Ojulari’s comments during a media chat in Vienna that that “all options are on the table” sparked speculative media reports that the organization was contemplating second attempt at divestment.
But in operational updates with company workers, Ojulari eaffirmed the company’s resolve to complete planned upgrade and rehabilitation of the plant.
He noted that ongoing technical and financial reviewbof the Port Harcourt, Kaduna and Warri refineries indicates that the earlier decision to operate the Port Harcourt refinery prior to full completion of its rehabilitation was ill-informed and sub-commercial.
Although progress is being made on all three, the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery.
Ojulari made it clear that selling is highly unlikely as it would lead to further value erosion.
The declaration was well received by the company’s workers whose jobs would have on the line.
Workers union leaders described the position of the company’s management as business-focused.
NNPC Limited described the town hall meeting as an opportunity for candid and constructive engagement where Executive Vice Presidents of the company presented progress reports from the Upstream, Downstream, Finance, Business Services, Gas, Power, and New Energy businesses.
They highlighted operational achievements, ongoing reforms, and areas requiring attention.
Ojulari declared that NNPC Limited would continue to reposition itself as a commercially driven, professionally managed national energy company that is grounded in transparency, focused on performance, and unwavering in its responsibility to Nigerians.
