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- Bayo Ojulari, the Group CEO of NNPC, admitted that repairing Nigeria's state-owned refineries has go progressively difficult
- He noted that refurbishing ageing refineries has proven much analyzable than anticipated, and selling the refineries remains a imaginable option
- Additionally, Ojulari revealed that Nigeria's crude lipid accumulation costs fluctuate betwixt $20 and $30 per barrel, partially owed to the important investments
Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian National Petroleum Company (NNPC) Limited's Group Chief Executive Officer, Bayo Ojulari, has admitted that the nation’s state-owned refineries are becoming progressively hard to repair.
Source: Getty Images
Ojulari stated that the NNPC is presently reviewing its refinery strategies and plans to implicit this valuation by the extremity of the twelvemonth successful an interrogation with Bloomberg connected Thursday. He made these statements during the 9th Organization of the Petroleum Exporting Countries (OPEC) International Seminar successful Vienna, Austria.
“We’ve invested importantly successful the refineries implicit caller years and introduced assorted technologies,” Ojulari explained. “However, we person encountered challenges. Some of the technologies person not delivered arsenic expected. Furthermore, refurbishing ageing refineries that person remained idle for a agelong clip has proven to beryllium much analyzable than anticipated.”“As a result, we are presently reviewing each aspects of our refinery strategy. We purpose to finalise this appraisal earlier the twelvemonth ends, and the findings whitethorn punctual a displacement successful our approach,” helium added.The Port Harcourt refinery formally resumed processing crude lipid connected November 26, according to the NNPC. In May, however, the works was closed for regular maintenance. Meanwhile, the Warri and Kaduna refineries are undergoing restoration.
He added that, arsenic portion of the ongoing strategical assessment, NNPC has not ruled retired the enactment of selling the refineries.
“To beryllium honest, selling is inactive connected the table. All options are presently being considered, but immoderate last determination volition beryllium connected the outcomes of our existent review,” helium noted.Nigeria’s Oil Production Costs Hover Around $20 to $30 Per Barrel
Ojulari further stated that the operating outgo of crude lipid accumulation successful Nigeria presently fluctuates betwixt $20 and $30 per barrel.
“When it comes to crude production, we person some superior and operational expenses. At present, operational costs are somewhat supra $20 per barrel, which is comparatively high,” helium said.
Source: Getty Images
He attributed portion of this disbursal to the ample sums of money spent safeguarding the nation’s lipid pipeline network.
“Today, we person 100% pipeline availability owed to these investments,” helium explained. “We expect these costs to diminution implicit clip arsenic the assemblage stabilises; but for now, they stay betwixt $25 and $30 per barrel,” helium added.Dangote gives reasons Port Harcourt, Warri, Kaduna refineries
Legit.ng reported that the Nigerian National Petroleum Corporation Limited (NNPCL) has been embroiled successful a immense ungraded aft its effort to revamp the three refineries failed.
Reports corroborate that implicit $18 cardinal was allocated and released for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries.
Despite spending this immense sum, the refineries could inactive not nutrient immoderate fuel, starring to calls for an investigation.
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