The Nigerian National Petroleum Company Limited has said the recently signed Memorandum of Understanding with Chinese firms for the rehabilitation and operation of the Port Harcourt and Warri refineries has entered a rigorous evaluation phase, insisting that the arrangement is aimed at creating profitable and self-sustaining refining assets.
The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, disclosed this in a post on his official X handle on Friday, amid growing calls from petroleum marketers and operators for the Federal Government to fast-track discussions to finally restore the country’s troubled state-owned refineries to full operation.
Ojulari said reviving Nigeria’s refineries required more than simply replacing equipment and 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.
The NNPC boss said the company was pursuing a strategic shift towards a performance-based business partnership model that would guarantee long-term sustainability rather than temporary fixes.
According to him, the new approach is “built for profitable and self-sustaining refineries.” He clarified that the memorandum signed with the prospective partners should not be mistaken for a final 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 explained that the prospective partners would bear the cost of carrying out the due diligence process, a move that would ensure decisions are based on commercial realities and technical assessments. “Prospective partners are covering the full cost, which keeps the process data-driven,” he added.
Beyond refining, Ojulari said the partnership discussions were also expected to unlock investments across the broader 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.
The comments came weeks after NNPC signed a memorandum of understanding with a consortium of Chinese companies to explore the rehabilitation and potential co-management of the Port Harcourt and Warri refineries under a new business model.
On April 30, 2026, NNPC Ltd signed a Memorandum of Understanding with two Chinese firms—Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd.
The arrangement is expected to bring in technical expertise, financing support, and operational efficiency in a bid to halt years of losses and repeated shutdowns at the facilities.
The Port Harcourt Refining Company consists of two plants with a combined installed capacity of 210,000 barrels per day, while the Warri Refining and Petrochemical Company has a nameplate capacity of 125,000 barrels per day. The facilities, alongside the 110,000-barrels-per-day Kaduna refinery, have consumed billions of dollars in rehabilitation expenses over the years but have struggled to operate sustainably.
The Federal Government approved massive rehabilitation programmes for the refineries in recent years. The Port Harcourt refinery briefly resumed operations before suffering operational setbacks, while the Warri refinery also experienced repeated shutdowns after attempts to restart production.
The latest push by NNPC also comes as petroleum marketers have intensified calls for the government to conclude negotiations with competent international partners capable of transforming the refineries into commercially viable businesses.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, recently urged the Federal Government and NNPC to expedite discussions with the Chinese firms, saying Nigeria could no longer afford to keep spending huge sums on refinery rehabilitation without achieving sustainable production.
According to marketers, bringing in experienced technical partners could significantly reduce Nigeria’s dependence on imported petroleum products and strengthen the country’s energy security.
Operators also believe the success of the initiative could complement supplies from the Dangote Petroleum Refinery and other modular refineries, creating a more competitive domestic refining market and reducing pressure on foreign exchange used for fuel imports.
The outcome of the ongoing evaluation process could determine whether Nigeria’s long-running efforts to revive its state-owned refineries finally yield results or become another chapter in the country’s troubled refining history.