The Nigerian National Petroleum Company Limited (NNPC Ltd) has commenced a detailed evaluation of its proposed partnership with Chinese firms to rehabilitate and operate the Port Harcourt and Warri refineries, signaling a fresh attempt to restore Nigeria’s struggling refining sector. The initiative follows the signing of a Memorandum of Understanding (MoU) with Chinese investors and is expected to determine the feasibility of transforming the facilities into profitable and self-sustaining businesses.
NNPC Group Chief Executive Officer, Bayo Ojulari, disclosed that the agreement has moved into a rigorous assessment stage, stressing that the process goes beyond simply repairing old infrastructure. According to him, reviving the country’s refineries requires capable technical partners, strong commercial structures, and a sustainable business model that can deliver long-term results. He emphasized that the MoU should not be mistaken for a final contract but rather an opportunity to explore collaboration with potential partners.
Ojulari explained that the evaluation process is entirely funded by the prospective Chinese partners, ensuring that decisions are driven by technical data and commercial realities rather than government expenditure. He noted that the proposed model focuses on performance-based partnerships designed to make the refineries financially viable while reducing the cycle of repeated shutdowns and costly rehabilitation efforts that have plagued the facilities for decades.
Beyond refinery operations, the discussions are expected to open doors for wider investments across Nigeria’s energy sector. NNPC revealed that the vision includes expanding the petrochemical value chain and developing gas-based industries, including new methanol plants. Industry stakeholders believe such investments could create jobs, boost industrial growth, and strengthen Nigeria’s position as a major energy producer in Africa.
The development has been welcomed by petroleum marketers and industry operators who have repeatedly urged the Federal Government to secure competent international partners for the refineries. With the Port Harcourt and Warri plants possessing a combined capacity of over 335,000 barrels per day, experts say a successful partnership could reduce Nigeria’s dependence on imported fuel, complement production from the Dangote Refinery and modular refineries, and enhance the nation’s energy security. As the evaluation process progresses, many Nigerians will be watching closely to see whether this latest effort finally delivers a lasting solution to the country’s long-standing refinery challenges.
source: punch
