ABUJA, Nigeria (VOICE OF NAIJA)-The Nigerian National Petroleum Company Limited has disclosed that the recently signed Memorandum of Understanding with Chinese firms for the rehabilitation and operation of the Port Harcourt and Warri refineries is undergoing a rigorous evaluation process, stressing that the initiative is designed to establish profitable and self-sustaining refining assets.
The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, made this known in a post on his official X handle on Friday, as petroleum marketers and industry operators continue to urge the Federal Government to accelerate discussions aimed at restoring the country’s state-owned refineries to full operation.
Ojulari said reviving Nigeria’s refineries required more than replacing obsolete equipment or carrying out repairs.
“Fixing a refinery takes more than pipes and pumps. It takes the right partners. That’s the thinking behind the MoU recently signed for the Port Harcourt and Warri refineries, now moving into a rigorous evaluation phase,” he stated.
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He explained that NNPC was adopting a strategic, performance-based business partnership model intended to deliver long-term sustainability instead of short-term interventions.
According to him, the new model is “built for profitable and self-sustaining refineries.” He also emphasised that the memorandum signed with the prospective partners should not be interpreted as a binding agreement.
“A strategic shift towards lasting results. Introducing a performance-based business partnership model, built for profitable and self-sustaining refineries. Evaluation, not commitment. The MoU is an agreement to explore working together, not a binding contract,” Ojulari said.
He further noted that the prospective partners would finance the due diligence process, ensuring that all decisions are guided by technical assessments and commercial realities. “Prospective partners are covering the full cost, which keeps the process data-driven,” he added.
Ojulari said the proposed partnership extends beyond refinery rehabilitation and is expected to stimulate investments across the wider energy value chain.
“The vision includes expanding the petrochemicals value chain and investing in gas-based industries, including new methanol plants. Real change isn’t announced once. It’s built through discipline applied consistently, at every stage, until it becomes how things are done,” he stated.
His remarks followed the signing of a Memorandum of Understanding between NNPC and a consortium of Chinese firms to explore the rehabilitation and possible co-management of the Port Harcourt and Warri refineries under a new operational model.
On April 30, 2026, NNPC Ltd signed the Memorandum of Understanding with Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd.
The partnership is expected to provide technical expertise, financing support and improved operational efficiency to address years of financial losses and repeated shutdowns at the facilities.
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 110,000-barrels-per-day Kaduna refinery, the facilities have received billions of dollars in rehabilitation funding over the years but have continued to struggle with sustainable operations.
The Federal Government has approved several large-scale rehabilitation programmes for the refineries in recent years.
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Although the Port Harcourt refinery briefly resumed operations, it later experienced operational setbacks, while the Warri refinery also suffered repeated shutdowns after efforts to restart production.
The latest initiative also comes as petroleum marketers intensify calls for the government to conclude negotiations with capable international partners that can transform the refineries into commercially viable enterprises.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, recently urged the Federal Government and NNPC to speed up discussions with the Chinese companies, arguing that Nigeria could no longer continue spending huge sums on refinery rehabilitation without achieving sustainable production.
According to marketers, engaging experienced technical partners would reduce Nigeria’s reliance on imported petroleum products while strengthening the country’s energy security.
Industry operators also believe a successful partnership would complement output from the Dangote Petroleum Refinery and other modular refineries, encourage greater competition in the domestic refining market and ease pressure on foreign exchange used for fuel imports.
The outcome of the ongoing evaluation process is expected to determine whether Nigeria’s decades-long efforts to revive its state-owned refineries will finally achieve lasting success or add another setback to the country’s troubled refining history.