The Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced the evaluation stage of its proposed partnership with Chinese firms to rehabilitate and operate the Port Harcourt and Warri refineries.
The company’s Group Chief Executive Officer, Bayo Ojulari, announced the development on Friday through his official X account, describing the exercise as part of efforts to establish commercially viable and self-sustaining refineries.
According to Ojulari, the memorandum of understanding signed with the Chinese companies is not a final agreement but a framework that allows both sides to assess the feasibility of working together.
He explained that the current phase involves extensive technical and commercial assessments, stressing that the potential partners are funding the due diligence process themselves to ensure decisions are based on reliable data and business realities.
Ojulari said the initiative represents a shift from previous rehabilitation efforts by focusing on long-term operational performance rather than short-term repairs.
Beyond restoring refinery operations, he noted that the discussions could also encourage investment in Nigeria’s petrochemical industry and gas-based projects, including the development of new methanol plants.
NNPC signed the memorandum of understanding on April 30, 2026, with China’s Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd. The proposed collaboration is expected to provide technical expertise, financing and operational support for the country’s ageing refineries.
Nigeria’s state-owned refineries have faced years of operational challenges despite several government-backed rehabilitation programmes. The Port Harcourt refinery, which has a combined installed capacity of 210,000 barrels per day, and the 125,000-barrel-per-day Warri refinery have both experienced repeated shutdowns after attempts to resume production.
Industry stakeholders have continued to urge the Federal Government and NNPC to conclude negotiations with capable international partners, arguing that successful rehabilitation of the refineries would reduce the country’s dependence on imported petroleum products, strengthen energy security and complement supplies from the Dangote Petroleum Refinery and other modular refineries.
The outcome of the ongoing evaluation will determine whether the proposed partnership progresses to a formal agreement and whether Nigeria’s latest effort to revive its state-owned refineries can deliver lasting results.
