.National oil firm says cost of due diligence covered by partners
.OPEC oil output jumps in June, Nigeria pumps more crude
Emmanuel Addeh in Abuja
In spite of sustained public criticism over plans to hand over the operations of the Port Harcourt and Warri refineries to private partners after close to $3 billion was spent on their rehabilitation, the Nigerian National Petroleum Company Limited (NNPC) has commenced the evaluation phase of the proposed partnership.
The Group Chief Executive Officer of NNPC, Mr. Bayo Ojulari, disclosed on his X handle yesterday that the recently signed Memorandum of Understanding (MoU) with prospective partners had progressed to a rigorous due diligence stage.
He stressed that the process was aimed at securing long-term commercial viability for the refineries rather than another round of short-term fixes.
Ojulari maintained that reviving the country’s refineries required more than replacing equipment, insisting that bringing in the right technical and business partners was essential to ensuring sustainable operations.
“Fixing a refinery takes more than pipes and pumps. It takes the right partners. That’s the thinking behind the MoU recently signed for the Port Harcourt and Warri Refineries, now moving into a rigorous evaluation phase,” he stated.
According to him, the initiative represents a strategic shift towards a performance-based business partnership model designed to deliver profitable and self-sustaining refinery operations.
He clarified that the MoU does not amount to a binding agreement, but merely provides a framework for both parties to explore areas of collaboration pending the outcome of technical and commercial evaluations.
“The MoU is an agreement to explore working together, not a binding contract,” the NNPC chief explained.
Ojulari also sought to allay concerns over the financial implications of the exercise, revealing that the prospective partners would bear the full cost of the due diligence process.
He said the arrangement ensures that the evaluation remains objective and data-driven without imposing additional financial obligations on NNPC.
“Prospective partners are covering the full cost, which keeps the process data-driven,” he stated.
Beyond restoring the two refineries, Ojulari said the broader vision was to deepen Nigeria’s downstream value chain through investments in petrochemicals and gas-based industries.
According to him, the long-term plan includes expanding petrochemical production as well as developing new methanol plants capable of supporting industrial growth and enhancing energy security.
“The vision includes expanding the petrochemicals value chain and investing in gas-based industries, including new methanol plants,” he added.
The clarification comes amid widespread criticism following reports that NNPC had opted to seek external operators for the Port Harcourt and Warri refineries despite spending substantial sums on their rehabilitation over the past few years.
Many stakeholders have questioned the rationale for inviting private partners after repeated assurances that the refineries had resumed operations, arguing that the move raises fresh concerns about the effectiveness of the rehabilitation programme. Many Nigerians believe the facilities should be sold as scrap.
Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) significantly increased crude oil production in June as Gulf producers began restoring supplies disrupted during the Iran conflict and the temporary closure of the Strait of Hormuz.
A Reuters survey showed that crude production by the 11-member OPEC rose by about 3.3 million barrels per day in June to 19.43 million barrels per day, rebounding from the lowest monthly output recorded in more than two decades.
According to the survey, Kuwait and Iran recorded the largest increases after the United States lifted restrictions on shipping to and from Iranian ports, allowing Tehran to restore production, while Nigeria also raised its output.
Saudi Arabia and Iraq also increased output during the month, while Nigeria and Libya posted modest production gains as their exports were largely unaffected by the regional conflict.
The Reuters survey noted, however, that OPEC production remains below members’ agreed quotas despite the sharp recovery.
Seven members of the wider OPEC+ alliance had earlier agreed to raise production in June, but implementation was delayed by the conflict involving Iran, which disrupted regional oil supplies and shipping.
