NNPC refinery partnership discussions have entered a critical evaluation stage as the Nigerian National Petroleum Company Limited advances plans to revive the Port Harcourt and Warri refineries through collaboration with Chinese firms. The state-owned energy company said the process is designed to identify competent partners capable of transforming the refineries into commercially viable and self-sustaining assets.
The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, announced the development in a post on his official X account on Friday. His remarks come as industry stakeholders continue to urge the Federal Government to speed up efforts to restore Nigeria’s ageing refineries to stable production.
According to Ojulari, successful refinery rehabilitation requires more than replacing ageing equipment. Instead, he said the company is adopting a performance-based business model that prioritises efficiency, profitability and long-term sustainability.
He also clarified that the Memorandum of Understanding signed with the Chinese consortium is not a final agreement but a framework for evaluating the feasibility of a long-term partnership.
NNPC refinery partnership enters review
Ojulari explained that the memorandum has progressed into a rigorous evaluation process that will determine whether the proposed partners possess the technical and financial capacity to operate the refineries successfully.
He noted that the assessment will rely on detailed technical studies, commercial analysis and operational due diligence before any binding agreement is considered.
Furthermore, the prospective partners will finance the entire evaluation process. According to NNPC, this approach keeps the exercise objective while protecting public resources from unnecessary expenditure.
The company believes that careful evaluation will produce better outcomes than previous rehabilitation efforts.
Chinese firms to assess refinery operations
The NNPC refinery partnership began after the company signed a Memorandum of Understanding on April 30, 2026, with Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd.
The proposed collaboration seeks to rehabilitate, operate and potentially co-manage the Port Harcourt and Warri refineries under a commercially driven business model.
NNPC expects the Chinese firms to contribute technical expertise, operational experience and financing support capable of improving refinery efficiency and profitability.
Ojulari emphasised that no final commitment has been made because the current stage focuses entirely on evaluating the viability of the proposed partnership.
NNPC refinery partnership supports energy expansion
Beyond refinery rehabilitation, the proposed partnership is expected to strengthen Nigeria’s broader energy sector.
Ojulari disclosed that discussions also cover investments in petrochemical production and gas-based industries, including new methanol plants.
According to him, expanding these sectors would create additional economic opportunities while improving value addition within Nigeria’s petroleum industry.
He added that meaningful reforms require consistent implementation, disciplined planning and commercially sustainable business decisions rather than temporary interventions.
State-owned refineries face persistent challenges
Nigeria’s government-owned refineries have struggled with operational setbacks despite several rehabilitation programmes funded over the years.
The Port Harcourt Refining Company operates two plants with a combined installed capacity of 210,000 barrels per day, while the Warri Refining and Petrochemical Company has an installed capacity of 125,000 barrels per day. The Kaduna refinery adds another 110,000 barrels per day.
Although billions of dollars have been invested in rehabilitation projects, stable commercial production has remained difficult to achieve. The Port Harcourt refinery briefly resumed operations before encountering fresh operational problems, while the Warri refinery also experienced repeated shutdowns after earlier restart efforts.
Industry welcomes NNPC refinery partnership
Petroleum marketers have expressed support for the ongoing evaluation, saying experienced international partners could finally provide the expertise needed to restore Nigeria’s refining capacity.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, recently urged NNPC and the Federal Government to conclude discussions with technically competent investors capable of delivering sustainable refinery operations.
Industry operators believe successful rehabilitation would reduce Nigeria’s dependence on imported petroleum products, strengthen energy security and improve domestic fuel supply.
They also argue that revitalised state-owned refineries would complement production from the Dangote Petroleum Refinery and modular refineries, creating a stronger and more competitive downstream market.
The NNPC refinery partnership is therefore being closely watched by stakeholders across the energy sector. The outcome of the ongoing evaluation is expected to determine whether the proposed collaboration can finally reverse decades of refinery underperformance and establish commercially sustainable refining operations in Nigeria.
