Obasanjo, NNPCL disagree over refineries

Former President Olusegun Obasanjo and the Nigerian National Petroleum Company Limited (NNPCL) yesterday traded words over the recent resumption of production at some government-owned refineries.

Obasanjo spoke following the resumption of refining activities at the Warri Refining and Petrochemical Company (WRPC).

After about a decade of dormancy, the NNPCL announced that the 125,000 barrels per day refinery is now operational, working at 60 per cent capacity.

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This was coming about a month after the Port Harcourt Refinery resumed production, also after a long period of rehabilitation.

The resumption of Port Harcourt was greeted with doubts in some quarters following the suspension of operation while the NNPCL insists the refinery has resumed crude oil refining.

Amidst the doubt that greeted the Port Harcourt refinery’s resumption of operation, Obasanjo yesterday doubted the capacity of the NNPC to run government-refineries.

He doubted claims that the refineries are working.

The former president spoke in an interview on Channels on Thursday, a few days after the national oil company announced that the Warri refinery has come back on stream, operating at 60 per cent capacity.

The former president was equally reported in the past to have said that refineries can never work.

He repeated the claim yesterday, taunting the government’s pronouncement and questioning NNPC’s capacity to run the refineries.

Speaking yesterday, he revealed how his successor, late President Umar Musa Yar’Adua, rejected Alhaji Aliko Dangote’s bid to manage Nigeria’s refineries on a public-private partnership basis.

He stated that Dangote, who now boasts of a 650,000 barrel per day refinery in Lagos, offered $750m for Port Harcourt and Kaduna refineries.

He noted that Dangote has the capacity to manage his privately owned refinery effectively, contrasting it with the government’s inefficiency.

Obasanjo said, “I asked Shell to come and run it for us and Shell said they wouldn’t. I said, ‘Please come and take equity,’ they said no. I said okay, don’t take equity, come and run it, they said no.

“Later on, I called them. I called the boss of Shell to come and tell me what the problem was and he gave me four or five reasons. He said, first of all, they make a major profit from upstream, not from downstream. He said they run downstream just to keep their head above water.

“Two, our refineries were too small: 60,000 barrels 100,000 barrels and I think 120,000 barrels. He said that at that time, the average refinery was going for 250,000 barrels.

“Three, he said our refineries were not well maintained. Four, he said that there was too much corruption around the activities of our refineries and they would not want to get involved in that.

“Aliko got a team together and they paid $750m to take part in PPP (Public-Private Partnership) in running the refineries. My successor refunded their money and I went to my successor, I told him what transpired, he said NNPC said they wanted the refinery and they could run it and I said but you know they cannot run it.

“I was told not too long ago that since that time, more than two billion dollars have been squandered on the refineries and they still will not work. If a company like Shell tells me what they told me, I will believe them. But here we are, over $2 billion squandered, and the refineries still won’t work.”

NNPC invites Obasanjo on refinery tour

The NNPCL in response said the former president should come and take a tour of the newly completed refineries to witness firsthand the progress made under the leadership of NNPC Limited.

According to the company, a notable achievement of the NNPCL as a private entity that has transitioned from being a loss-making organization to becoming a profit-oriented global energy leader was the “complete rehabilitation of the Port Harcourt Refining Company (PhRC) and Warri Refinery.”

“This is not the typical Turnaround Maintenance (TAM) of the past but a comprehensive overhaul designed to meet world-class standards. Similar efforts are underway at the old Port Harcourt Refinery and Kaduna Refinery, ensuring these facilities are enhanced and maintained to global standards for sustainable operation.

“This progress has been driven by the visionary leadership of the NNPC Limited board and the management team led by the GCEO Mele Kyari, alongside President Bola Ahmed Tinubu’s transformative policies in the energy sector.

“Together, they have achieved unprecedented milestones, setting NNPC Limited on a path to redefine energy security for Nigeria while positioning the company as a leader on the global energy stage.”

NNPCL added that under the new model, it has expanded beyond oil and gas “to become an integrated energy company,” stressing that, “Our focus is not only on harnessing traditional resources but also on developing cleaner, cheaper, and sustainable energy solutions to meet Nigeria’s growing demands.

“We extend an invitation to our esteemed former president to join us in this historic journey. His wisdom and experience are invaluable, and we deeply appreciate his insights and guidance, which will always be welcomed and cherished.

“We remain grateful for his enduring contributions to Nigeria’s development and are committed to building a brighter, more prosperous future for our nation. Together, we can continue to ensure energy security and deliver sustainable value to all Nigerians.”

No need joining issue with Obasanjo – Yemi Oke

Yemi Oke, a Professor of Energy Law, said he has visited the refineries and confirmed they are operational.

He stated that there is no need to join issues with the former president, noting that politics is behind the doubt around the refineries.

On his part, Energy Expert, Kelvin Emmanuel backed Obasanjo, saying, “You’re inviting OBJ to come and tour a complex that cannot directly refine PMS and has resorted to blending…”

Emmanuel, who also doubted the working of the refineries, wrote on his X page that, “I’m curious as to what the president will tell Nigerians when the refineries pack up again…”