NNPCL hints at refineries’ rehabilitation as profit hits N5.4trn

The Nigerian National Petroleum Company Limited (NNPCL) has given further insight into its plan to turn around the four state-owned refineries in Port Harcourt, Warri and Kaduna. This is coming amidst the seemingly unending uncertainty surrounding the refineries which have gulped trillions in maintenance without producing. The Group Chief Executive Officer of the Engr Bashir […]

The Nigerian National Petroleum Company Limited (NNPCL) has given further insight into its plan to turn around the four state-owned refineries in Port Harcourt, Warri and Kaduna.

This is coming amidst the seemingly unending uncertainty surrounding the refineries which have gulped trillions in maintenance without producing.

The Group Chief Executive Officer of the Engr Bashir Bayo Ojulari, however stated that the planned maintenance of its three refineries will see it rejigged to produce internationally accepted high-grade petroleum products.

Speaking during a press briefing yesterday in Abuja, Ojulari said the current capacity of the refineries makes it difficult to produce low grade petroleum products.

Daily Trust reports that Ojulari on assumption of office had hinted on the sale of the refineries before he later recanted, saying they are no longer for sale.

The Port Harcourt refinery which was widely celebrated late last year later shut down in the first quarter of 2025 in controversial circumstances.

Several probes by the National Assembly revealed trillions of naira spent on the rehabilitation of the refineries.

 

Private entities to rescue

However, Ojulari noted that the company, having transited to a limited liability company, is now positioned to make sure the refineries are operational when they are profitable and sustainable.

“If we go by the original plan, let’s just assume we just go ahead with the completion timeline set by the previous board, by the time we finish the ongoing rehabilitation, the products from those refineries will be far lower in standard than the Dangote refinery and then two-step lower in standard by the current international specifications.

“That is not what we want to be designed but that of high grade so that the petroleum products we produce will be of international standard and we will have a good commercial market rate.”

On how the refineries will be rehabilitated, he said the company will go into a profitable contract with reputable companies that currently operate a refinery to measure their level of competence.

“The PIA already creates an environment where NNPCL is able to consummate a commercial agreement and commercial entity than ever before. If you look at the Dangote Refinery, you will see that most people running it are foreigners. We need to review our policies as we have lost that capacity of attraction overtime. So, what we are looking for is some partnership with private entities.

“These private entities must have existing refineries that they are running, so, you don’t just by mouth, so they must have that track record and our intention is to partner with them as a business. It will be a commercial agreement where they bring in technical capacity, technical resources and all of that and we complement it with the ability we have and we cooperate but they will lead the operation because we want people who are still in the game.”

 

No timeline yet on operation

He added that there is no timeline yet on when the refineries will be in operations but there will be clear progress by the second quarter of 2026.

“Timeline is a big challenge to say but I will just tell you that sometime about the middle of next year, we will be in a better position to give a firmer date. But the timeline I can give you is that by the middle of next year, we would have agreed and defined the partnerships, the technical partnerships; the new relationship; the new contracts, everything will be in place to have a clear roadmap towards the completion of those refineries.”

 

Declares N5.4tr profit for 2024

He further declared that the company made a N5.4trn profit after tax in 2024, a rise from the N3.297tn it made in 2023.

He said the company made a total of N45.1trn revenue during the year, an 88% year-on-year growth increase, adding that earnings per share is N27.07, a 64% year-on-year growth.

He attributed the rise in revenue to the depreciation of the naira that saw it increase from N600 to N1,500.

“You can recall that the CBN gave the order of floating the Naira, this boosted our profits and had a positive impact on the product, right? We now know that Naira is relatively stable.”

On future outlook, he said profits in the coming year will be within the range but production might not be much different.

Ojulari said the earnings highlight the positive momentum of its ongoing transformation and the unwavering commitment of its workforce.

Describing NNPC Limited as Nigeria’s leading oil and gas company, Ojulari explained that the organisation, established in 1977, underwent a major transformation in July 2022, becoming a fully commercial and profit-driven entity under the Petroleum Industry Act (PIA) of 2021.

“Today, NNPC Limited plays a pivotal role across the entire oil and gas value chain, from exploration and production to refining and distribution, driving growth and energy security for Nigeria and the continent.”

“The 2024 Audited Financial Statement will be a roadmap for sustained growth and energy security and NNPC Limited is accelerating investments across upstream operations, gas infrastructure, and clean energy to extend growth into the next decade.

“Key strategic targets include: increasing crude oil production to 2 million barrels per day (bpd) by 2027 and 3 million bpd by 2030. Growing natural gas production to 10 bcf/d by 2027 and 12 bcf/d by 2030 and completing major gas infrastructure projects such as Ajaokuta-Kaduna-Kano (AKK), Escravos-Lagos Pipeline System (ELPS) and Obiafu-Obrikom-Oben (OB3) pipelines to strengthen domestic supply and regional integration.”

 

…Targets 1.8 million barrels of crude oil production

On the production side, he said the company was producing around 1.5 million barrels last and this year was to the tune of 1.7 million.

“We hope that next year we will be able to get that closer to 1.8 million. So, if all the investment we are having comes through, we still see that we can hit 2 million barrels by 2027. It is an ambitious target but our approach to it is doing all the things we need to make it happen. Right, we’re not second-guessing, we’re not looking, we’re not looking for a way out.

He commended the federal government for providing a safe corridor for the pipelines that has helped reduce vandalism and crude oil theft.

“We want to strengthen domestic energy security, and pursue a $60bn investment pipeline to expand oil and gas output. Our goal remains to raise crude oil production to 3 million barrels per day by 2030 and grow gas production to 12 billion cubic feet daily.”