NNPC Begins Critical Evaluation of Chinese Refinery Deal as Nigeria Pushes to Revive Port Harcourt and Warri Refineries

NNPC Begins Critical Evaluation of Chinese Refinery Deal as Nigeria Pushes to Revive Port Harcourt and Warri Refineries

NNPC says the Chinese refinery partnership is only in the evaluation stage, with the goal of building profitable, self-sustaining refineries that will strengthen Nigeria's energy sector.

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has confirmed that its recently signed Memorandum of Understanding (MoU) with Chinese firms for the rehabilitation and operation of the Port Harcourt and Warri refineries has officially entered a rigorous evaluation phase.

According to NNPC Group Chief Executive Officer Bayo Ojulari, the partnership represents a strategic shift from costly short-term repairs to a sustainable, performance-driven business model capable of transforming Nigeria's struggling state-owned refineries into profitable assets.

NNPC: Refinery Revival Requires More Than Repairs

In a statement shared via his official X account on Friday, Ojulari stressed that restoring Nigeria's refineries goes far beyond replacing damaged equipment.

«"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 explained that NNPC is focused on creating long-term commercial success rather than repeating decades of expensive rehabilitation projects that have delivered limited results.

MoU Is Not a Final Agreement

Ojulari clarified that many Nigerians have misunderstood the purpose of the Memorandum of Understanding.

He emphasized that the MoU does not represent a binding contract but simply allows both parties to explore possible collaboration.

According to him, the current process involves detailed technical, financial, and commercial assessments before any final investment decision is made.

«"Evaluation, not commitment. The MoU is an agreement to explore working together, not a binding contract."»

This means no final partnership has yet been approved.

Chinese Companies Covering Evaluation Costs

One of the most notable aspects of the agreement is that the prospective Chinese partners will fund the entire due diligence process.

According to Ojulari, this ensures that every decision will be guided by accurate data, technical feasibility, and commercial viability without placing additional financial pressure on NNPC.

He described the process as transparent, disciplined, and focused entirely on achieving measurable results.

Beyond Refining: Bigger Energy Investments Planned

NNPC revealed that discussions extend far beyond refinery rehabilitation.

The company said the partnership could unlock major investments across Nigeria's energy sector, including:

- Expansion of the petrochemical industry

- Development of gas-based industries

- Construction of new methanol plants

- Increased industrial production

- Long-term energy security

Ojulari added that sustainable transformation requires consistent execution rather than one-time announcements.

«"Real change isn't announced once. It's built through discipline applied consistently, at every stage, until it becomes how things are done."»

The Chinese Refinery Partnership

On April 30, 2026, NNPC signed the Memorandum of Understanding with two Chinese companies:

- Sanjiang Chemical Company Limited

- Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd.

The proposed collaboration aims to provide:

- International technical expertise

- Financing support

- Operational efficiency

- Improved refinery management

- Commercial sustainability

If approved after evaluation, the partnership could mark one of the biggest restructuring efforts in Nigeria's downstream petroleum sector.

Nigeria's Refineries Have Consumed Billions

Nigeria's three government-owned refineries have struggled for decades despite repeated rehabilitation efforts.

Current installed capacities include:

- Port Harcourt Refining Company: 210,000 barrels per day

- Warri Refining and Petrochemical Company: 125,000 barrels per day

- Kaduna Refinery: 110,000 barrels per day

Although billions of dollars have been spent on repairs over the years, the refineries have repeatedly suffered shutdowns, poor performance, and operational setbacks.

The Port Harcourt refinery briefly resumed operations before encountering fresh technical challenges, while the Warri refinery also failed to sustain production after earlier restart attempts.

Petroleum Marketers Demand Faster Action

Industry stakeholders are urging the Federal Government and NNPC to move quickly.

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, recently called on authorities to accelerate negotiations with the Chinese firms.

According to marketers, Nigeria can no longer afford endless refinery rehabilitation projects that fail to deliver consistent fuel production.

They believe experienced international partners could finally restore commercial efficiency while reducing dependence on imported petroleum products.

Potential Benefits for Nigeria

If the evaluation leads to a successful partnership, experts say Nigeria could experience significant benefits, including:

- Reduced fuel imports

- Improved energy security

- Lower pressure on foreign exchange reserves

- Increased domestic fuel production

- More jobs in the oil and gas sector

- Expansion of petrochemical manufacturing

- Stronger competition alongside the Dangote Petroleum Refinery and modular refineries

- Increased government revenue from local refining

What Happens Next?

The ongoing evaluation phase will determine whether the Chinese consortium possesses the technical capacity, financial strength, and operational expertise required to revive the Port Harcourt and Warri refineries under NNPC's new performance-based business model.

Should the assessments prove successful, Nigeria could finally move closer to ending decades of refinery underperformance and reducing its heavy dependence on imported fuel.

For millions of Nigerians, the outcome represents more than another government announcement—it could become a turning point in the country's long-running effort to achieve true energy independence and build a modern, competitive refining industry.

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