NNPC begins due diligence on Chinese refinery partnership

The Nigerian National Petroleum Company Limited has commenced the evaluation phase of its proposed partnership with Chinese firms to rehabilitate and operate the Port Harcourt and Warri refineries, describing the process as a step towards building commercially viable and self-sustaining refining assets.

The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, disclosed this in a post on his official X account on Friday, saying the recently signed Memorandum of Understanding was not a binding agreement but an opportunity to assess the feasibility of the partnership.

According to Ojulari, restoring Nigeria’s refineries requires more than repairs and equipment replacement, stressing that the company is adopting a performance-based partnership model designed to ensure long-term operational and financial sustainability.

He explained that the ongoing due diligence process would be funded entirely by the prospective partners, allowing technical and commercial assessments to be conducted without financial cost to NNPC.

Ojulari added that discussions with the Chinese firms extend beyond refinery rehabilitation to include investments in petrochemicals and gas-based industries, including the development of new methanol plants.

The evaluation follows the signing of an MoU on April 30, 2026, between NNPC and Chinese companies Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd. to explore the rehabilitation and possible co-management of the Port Harcourt and Warri refineries.

The proposed partnership is expected to provide technical expertise, financing and operational support aimed at reversing years of poor performance and repeated shutdowns at the facilities.

The Port Harcourt refinery has a combined installed capacity of 210,000 barrels per day, while the Warri refinery has a nameplate capacity of 125,000 barrels per day. Alongside the Kaduna refinery, the facilities have consumed billions of dollars in rehabilitation costs over the years without achieving sustained operations.

The latest development comes amid renewed calls by petroleum marketers for the Federal Government to fast-track negotiations with experienced international partners capable of transforming the refineries into profitable businesses.

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, recently urged the government to conclude talks with the Chinese firms, arguing that Nigeria can no longer afford repeated refinery rehabilitation projects without lasting results.

Industry operators also believe a successful partnership could complement production from the Dangote Petroleum Refinery and other modular refineries, reduce dependence on imported petroleum products and strengthen the country’s energy security.