The Nigerian National Petroleum Company Limited (NNPC Ltd) has reaffirmed its stance that the Port Harcourt Refining Company (PHRC) is not up for sale, putting to rest recent speculations fueled by ambiguous remarks at international forums. Instead, the state-owned oil company has disclosed plans to seek additional funding and forge advanced technical partnerships to complete the rehabilitation of all three government-owned refineries—Port Harcourt, Warri, and Kaduna.
This declaration came from the Group Chief Executive Officer of NNPC Ltd, Mr. Bayo Ojulari, during a company-wide town hall meeting held at the NNPC Towers in Abuja. The session served as both a performance update and a platform for direct engagement between management and staff, underscoring the company’s commitment to transparency and operational transformation.
Ojulari described any move to sell the PHRC as “ill-advised and sub-commercial,” a position that contradicts previous comments made at the 2025 OPEC Seminar in Vienna where he hinted that “all options were on the table” regarding the refineries. The clarification, made amid mounting public concern and media speculation, aligns with NNPC’s new business-driven direction under Ojulari’s leadership.
The company said its decision was informed by ongoing technical and financial reviews of the refineries, particularly the Port Harcourt plant, which has suffered decades of underperformance and intermittent rehabilitation.
“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 company said in a statement.
Despite significant progress—reportedly over 90% completion—issues around funding and contractor payment remain major hurdles. The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the move not to sell the refinery, insisting that the original contractors, including Italian firm Maire Tecnimont, should complete the work.
“If they sell it now, it doesn’t make sense. Nothing would be left for them,” said IPMAN’s Publicity Secretary, Chinedu Ukadike, during a phone interview with our correspondent.
He also raised concerns over the ongoing search for new technical partners when the original contractor had already taken the project far. Ukadike attributed the delay to unpaid contractor fees, urging the Federal Government to settle its obligations so that the refinery can finally begin operations.
Energy analyst Kelvin Emmanuel questioned the funding strategy, particularly in light of the $2.9 billion already borrowed in the past four years for refinery rehabilitation. In a post on his X (formerly Twitter) handle, he asked:
“What money is the company going to use? Are we looking at yet another crude-backed loan?”
The Port Harcourt Refinery comprises two units: an old plant with a capacity of 60,000 barrels per day (bpd), and a newer one capable of refining 150,000 bpd, giving the facility a combined output of 210,000 bpd. It has not operated at full capacity for more than two decades. In March 2019, the refinery was shut down for the first phase of repairs, and by December 2023, the Federal Government announced mechanical completion.
It briefly resumed production in late 2024 but was shut again in May 2025 for further technical adjustments. The current administration has made repeated assurances about its operational resumption, and Thursday’s announcement reinforced that commitment.
Staff in attendance reportedly welcomed the announcement with applause, describing the company’s renewed vision as “reassuring” and “transformational.” Executive Vice Presidents provided updates from the company’s various divisions, with a shared emphasis on accountability, performance, and business sustainability.
Ojulari concluded by affirming NNPC Ltd’s goal to be a “commercially driven, professionally managed national energy company, grounded in transparency and unwavering in its responsibility to Nigerians.”