*Losing N500m Monthly At PH Refinery When I Took Over
THE Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has lamented that the state corporation was under attack from forces opposed to its ongoing transformation efforts.
In a speech on Thursday, August 28, while hosting the leadership of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at the NNPC Towers in Abuja, Ojulari said change comes with a price, but that the management of the company will not succumb to pressure from individuals seeking to derail reforms aimed at repositioning it for the benefit of Nigerians.
According to statement posted on the company’s Facebook page, the GCEO stated: “We are under attack. We will not budge to short-term pressure, as it will not be in the best interest of Nigerians.
“You cannot drive change without a price, and the transformation is tough.”
The NNPCL GCEO said rehabilitating the Port Harcourt Refinery has been challenging due to years of neglect, explaining: “When you fix one thing, the other thing is still there. So, it’s been very difficult to get it.
“When I resumed, one of the first priorities I focused on was the refineries, to have a quick review, to see whether we could quickly fix it.
“What I found was that we were losing between N300million to N500million on a monthly basis in the overall refinery.
“Let’s take Port Harcourt. We were pumping about 950,000 barrels as cargo to go to the refinery. You know that kind of price.
“Then you also found that we were producing mid-grade product, because only half of the refinery was working.
“The way the refinery is designed, the two parts are one. You hear old refinery, new refinery. That’s the wrong information. The way the refinery was designed, when the old refinery came forward was that the old refinery was meant to feed into the new for the end product to be of the right standard to the market.”
He stated that attempts to revamp the old refinery were not optimal; hence “we could not properly produce premium motor spirit (PMS).
“But also the mid-grade product we were producing was at a significant loss to all of us. We’re all Nigerians. It’s not about me or anything. That was the problem.
“So, the first thing we then said was that rather than continue to lose, let’s quickly stop and look for a way to put the refinery into a sustainably profitable venture, but also a means of sustainable employment.”
While saying that patience would be needed as the process unfolded, he reaffirmed his commitment to the mandate given by President Bola Ahmed Tinubu, assuring the union leaders that the company would remain resilient, despite challenges.
Ojulari disclosed that since assuming office about five months ago, efforts had been concentrated on reviving Nigeria’s refineries under the Incorporated Joint Venture (IJV) model.
He expressed optimism that the approach would ensure sustainable operations rather than temporary fixes, adding: “Mr. President doesn’t pressure me to do the wrong thing. That is why we are looking at the baseline to ensure whatever we are doing, the refineries work sustainably going forward.”
“The mandate I was given is to look at the baseline and ensure that whatever we’re doing going forward sustainably works.
“There’s no need for us to pretend. So, there was no negative political pressure for NNPCL to just continue to run at a loss.”
He said the company decided to halt rehabilitation at the refinery, even as “we’ve been working assiduously to quickly find a way.”
Recall that on July 30, Ojulari said the NNPCL had no plans to sell off the Port Harcourt Refinery, recommiting to the completion of the high-grade rehabilitation.
President of PENGASSAN, Festus Osifo, commended the NNPCL management for its partnership during the 2025 PENGASSAN Energy and Labour Summit in Abuja.
He lauded the progress recorded under Ojulari’s leadership, including improvements in crude oil production and reductions in oil theft, noting: “As PENGASSAN, we assure you that we are solidly behind you. We will work with you and collaborate with your team to ensure the stability of the system for the benefit of all Nigerians.”
