Nigeria’s state-owned oil company, NNPC Limited, has announced that its partnership with two Chinese firms to rehabilitate and operate the Port Harcourt and Warri refineries has entered a detailed evaluation stage.
The company said the ongoing process is aimed at ensuring the refineries become profitable and sustainable businesses rather than repeating past efforts that failed to deliver long-term results.
The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, made the announcement through his official X account on Friday. According to him, repairing Nigeria’s refineries requires more than replacing damaged equipment. He explained that choosing experienced technical and financial partners is equally important to guarantee lasting success.
Ojulari noted that the recently signed Memorandum of Understanding (MoU) with the Chinese companies is only the beginning of discussions and should not be seen as a final agreement. He stressed that the current stage focuses on evaluating whether the partnership will deliver commercial and operational benefits for both sides.
He added that the proposed partnership is based on a performance-driven business model designed to create self-sustaining refineries capable of operating efficiently for many years.
According to Ojulari, the Chinese firms involved in the discussions are paying the full cost of the evaluation process. This, he said, allows decisions to be based on technical studies, financial analysis, and business realities instead of political considerations.
Beyond restoring refinery operations, NNPC also expects the partnership to attract investments into Nigeria’s wider energy industry. Plans being discussed include expanding the country’s petrochemical sector and investing in gas-based industries such as methanol production, which could create jobs and increase industrial output.
The partnership follows an MoU signed on April 30, 2026, between NNPC Ltd and two Chinese companies—Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd. The agreement is expected to provide technical expertise, funding support, and improved management for the ageing refineries.
Nigeria’s Port Harcourt Refining Company has two plants with a combined production capacity of 210,000 barrels of crude oil per day, while the Warri Refining and Petrochemical Company can process up to 125,000 barrels daily. Along with the Kaduna refinery, these facilities have received billions of dollars in rehabilitation funding over the years but have repeatedly failed to maintain stable production.
Although the Federal Government has invested heavily in restoring the refineries, previous attempts have faced operational setbacks. The Port Harcourt refinery briefly resumed operations before encountering fresh challenges, while the Warri refinery also experienced repeated shutdowns after restart efforts.
Industry stakeholders have welcomed the latest move but are urging the government to conclude negotiations without unnecessary delays.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, recently called on the Federal Government and NNPC to speed up discussions with the Chinese partners. He argued that Nigeria can no longer continue spending huge amounts on refinery repairs without achieving consistent fuel production.
Petroleum marketers believe that bringing in experienced international operators could reduce Nigeria’s dependence on imported petroleum products, improve the country’s energy security, and lower pressure on foreign exchange used for fuel imports.
Industry experts also say successful rehabilitation of the state-owned refineries would complement supplies from the Dangote Petroleum Refinery and other modular refineries, creating a more competitive domestic fuel market.
The outcome of the current evaluation is expected to determine whether Nigeria’s decades-long effort to revive its refineries will finally achieve lasting success or face another setback.
