NNPC in Talks With Chinese Company To Help Revive Broken Refineries
- NNPC is in discussion with a Chinese petrochemical firm and other investors to revive its refineries
- The plan involves selling partial equity to experienced refinery operators for more sustainable operations
- Nigeria's four refineries have a combined installed capacity of 445,000 barrels per day
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria’s state-owned oil company, the Nigerian National Petroleum Company Limited (NNPC), is in advanced talks with a Chinese petrochemical firm and other potential investors to revive its four long-troubled refineries.
Source: Getty Images
NNPC moves to revive idle refineries
Bayo Ojulari, the NNPC Group Chief Executive, disclosed this at the Nigeria International Energy Summit 2026 in Abuja on Wednesday, February 4, during a fireside chat titled “Securing Nigeria’s Energy Future.”
Reuters reports the company is seeking equity partners with proven expertise in running refineries, rather than relying on contractors or operations-and-maintenance firms.
Ojulari said:
“We are looking for entities that run refineries. We are not selling the refineries, but we are prepared to relinquish some equity so that partners have skin in the game."
The discussions come after an internal review revealed that the Port Harcourt (two plants), Warri, and Kaduna refineries have operated at significant losses, with high operating costs and low processing volumes.
The review highlighted years of underperformance and heavy spending on contractors.
Ojulari noted that NNPC’s board approved a strategy to bring in technically competent partners capable of sustaining operations and restoring profitability.
He added.
“The goal is to establish a self-financing, sustainable refinery system that runs like a business."
Nigeria looks to China to revive refineries
The NNPC CEO confirmed that a Chinese company, which owns one of the largest petrochemical plants in China, is set to inspect one of Nigeria’s refineries.
He also indicated that NNPC is in talks with several other interested parties, Punch reports.
Source: Twitter
Nigeria has struggled for decades to rehabilitate its 445,000-barrel-per-day refineries, often operating far below capacity. Repeated turnaround efforts have cost billions of dollars, yet domestic output remains low, forcing the country to import most of its fuel.
Ojulari noted that the recent launch of the Dangote Refinery has provided “breathing space” for domestic fuel supply, allowing NNPC to pause operations at its state-owned refineries while exploring partnership options.
The proposed equity partnership is a big shift from government-dominated control toward commercially driven operations to reverse years of losses and inefficiency.
Nigerian company to build ‘world class’ refinery
Earlier, Legit.ng reported that Clarivo Oil and Gas Ltd has announced plans to construct a world‑class oil refinery in Calabar.
Obidike Chukwuebuka, speaking to journalists in Calabar on Tuesday, January 20, said the proposed facility will be developed in multiple phases and feature state‑of‑the‑art technologies designed to produce high‑quality petroleum products.
The company projects that the refinery will come online within about five years, subject to regulatory approvals and the successful completion of project phases.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
