The Nigerian National Petroleum Company Limited (NNPC Ltd.) says its
recently signed Memorandum of Understanding (MoU) with two Chinese
companies for the rehabilitation and operation of the Port Harcourt and Warri
refineries has entered a rigorous evaluation stage. Small Business
The company said the proposed partnership is aimed at creating commercially
viable and self-sustaining refineries rather than delivering another short-term
rehabilitation programme.
Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, disclosed the
development in a statement shared on his official X account amid growing calls
from petroleum marketers for the Federal Government to accelerate efforts to
restore Nigeria’s state-owned refineries.
According to Ojulari, reviving the country’s refining assets requires more than
replacing ageing equipment and carrying out repairs.
He explained that the company is adopting a performance-based business
partnership model focused on long-term operational efficiency, profitability,
and sustainability.
Ojulari stressed that the recently signed memorandum should not be interpreted
as a final agreement, describing it instead as a framework for exploring a
potential partnership.
He noted that the current phase involves detailed technical and commercial
evaluations before any binding commitments are made.
According to him, the prospective Chinese partners are funding the entire due
diligence process, allowing decisions to be based on technical assessments,
commercial realities, and reliable operational data without additional financial
burden on NNPC.
Beyond restoring refinery operations, Ojulari said the discussions are expected
to stimulate broader investments across Nigeria’s energy sector.
He explained that the proposed collaboration includes plans to expand the
country’s petrochemical industry and support investments in gas-based
industries, including the development of new methanol plants.
NNPC signed the memorandum on April 30, 2026, with Sanjiang Chemical
Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and
Management Co. Ltd. to explore the rehabilitation and possible co-management
of the Port Harcourt and Warri refineries under a new business model.
The proposed partnership is expected to provide technical expertise, financing
support, and operational efficiency to address years of poor performance,
repeated shutdowns, and financial losses.
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.
Together with the Kaduna refinery, which has a capacity of 110,000 barrels per
day, Nigeria’s state-owned refineries have received billions of dollars in
rehabilitation funding over the years but have continued to struggle with
sustainable production.
The latest development comes as petroleum marketers continue to urge the
Federal Government and NNPC to conclude negotiations with experienced
international partners capable of transforming the facilities into commercially
successful businesses.
National President of the Petroleum Products Retail Outlets Owners Association
of Nigeria (PETROAN), Billy Gillis-Harry, recently called for the speedy
conclusion of discussions, arguing that Nigeria can no longer sustain repeated
spending on refinery rehabilitation without achieving consistent refining
operations.
Industry stakeholders believe that successfully reviving the Port Harcourt and
Warri refineries would reduce Nigeria’s dependence on imported petroleum
products, strengthen energy security, conserve foreign exchange, and
complement supplies from the Dangote Petroleum Refinery and other modular
refineries.
The outcome of the ongoing evaluation process is expected to determine
whether the proposed partnership can finally deliver sustainable operations for
Nigeria’s long-troubled state-owned refineries.