The Nigerian National Petroleum Company Limited (NNPCL) has unveiled plans to partner with private refining firms in a bid to revive the country’s long-idle state-owned refineries.

Group Chief Executive Officer, Bayo Ojulari, disclosed this on Wednesday in Abuja during a courtesy visit by the leadership of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). He said years of neglect had rendered the refineries unprofitable, making their independent operation unsustainable.

“When I resumed, one of my first priorities was to review the refineries. What I found was that we were losing between $300 million and $500 million. At Port Harcourt, for example, we pumped about 950,000 barrels as cargo, but the balance in and out was less than 40 percent. The mid-grade products we managed to produce were being sold at a significant loss,” Ojulari explained.

He noted that both technical and commercial reviews had been concluded, affirming that partnership with experienced operators was the only viable path forward. “Rather than continue to lose money, we decided to stop and look for a way to put the refineries on a sustainable footing. We cannot keep fixing one part today and watching another part fail tomorrow,” he added.

Ojulari stressed that President Bola Tinubu had given him a clear mandate to pursue a commercially and technically sustainable rehabilitation plan without political pressure to keep the refineries running at all costs. He further highlighted ongoing efforts to fix ageing pipelines, consolidate maintenance contracts, and train young engineers in modern refining technologies.

PENGASSAN President, Comrade Festus Osifo, commended Ojulari’s pragmatic approach and pledged the union’s support. He also reiterated calls for adopting the Nigeria Liquefied Natural Gas (NLNG) ownership model for the refineries, in which private investors hold majority stakes while NNPCL retains a reduced shareholding.

“NLNG is one experiment that has worked. If experienced refiners buy into our refineries while NNPCL holds a smaller stake, it will reduce political interference and guarantee sustainable operations,” Osifo said.

He further urged NNPCL to boost crude production, expressing optimism that with the right reforms, Nigeria could raise output from the current 1.8 million barrels per day to 2.5 million barrels per day by next year.