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NNPCL Warns Against Premature Operation of Port Harcourt Refinery, Prioritizes Full Rehabilitation

NNPCL Warns Against Premature Operation of Port Harcourt Refinery, Prioritizes Full Rehabilitation

The Nigerian National Petroleum Company Limited (NNPCL) has cautioned that operating the Port Harcourt Refinery before its comprehensive rehabilitation is fully completed would be an “ill-informed and sub-commercial” decision. This firm declaration was made by the Group Chief Executive Officer (GCEO) of NNPCL, Bashir Bayo Ojulari, during a company-wide town hall meeting on Tuesday, July 29, 2025, with an official statement released the following day.

Ojulari’s remarks come amid persistent public anticipation for the full resumption of operations at the Port Harcourt Refinery, a key asset in Nigeria’s quest for energy self-sufficiency. The refinery, with a combined capacity of 210,000 barrels per day, has been undergoing extensive rehabilitation for several years, a project that has reportedly gulped significant investments. While the government announced its mechanical completion and flare start-up in December 2023, and a brief period of production in November 2024, the facility was shut down again in May 2025 for further maintenance.

According to the NNPCL GCEO, detailed technical and financial reviews of the Port Harcourt, Kaduna, and Warri refineries have informed this cautious stance. “The ongoing review indicates that the earlier decision to operate the Port Harcourt refinery prior to full completion of its rehabilitation was ill-informed and sub-commercial,” Ojulari stated. This suggests concerns that a rushed restart could lead to operational inefficiencies, further breakdowns, or failure to achieve optimal performance, ultimately undermining the substantial investment already made.

The NNPCL’s position also served to clarify recent speculations regarding the potential sale of the Port Harcourt Refinery. Ojulari had previously hinted that “all options are on the table” regarding the future of Nigeria’s refineries during the 2025 OPEC Seminar in Vienna, fueling public concern. However, in his latest address, he explicitly ruled out the sale of the Port Harcourt Refining Company, reaffirming NNPCL’s unwavering commitment to completing its high-grade rehabilitation and retaining the plant under national control.

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“Although progress is being made on all three refineries, the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery. Thus, selling is highly unlikely as it would lead to further value erosion,” the NNPCL GCEO explained.

This announcement reinforces NNPCL’s mandate as a strategic custodian of national energy infrastructure and aligns with the Federal Government’s broader energy security objectives. It signals a resolve to ensure the long-term viability and efficiency of Nigeria’s refineries, even if it means a more patient approach to their full re-activation. The decision, received with applause by NNPCL staff during the town hall, aims to rebuild public trust and ensure that the refineries can sustainably contribute to meeting Nigeria’s domestic fuel demands.

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