NNPC Confirms Strategic Talks with Chinese Petrochemical Firm for Refinery Revitalization
The Nigerian National Petroleum Company Limited (NNPCL) has officially acknowledged ongoing negotiations with a prominent Chinese petrochemical corporation regarding a potential strategic partnership aimed at revitalizing one of Nigeria's state-owned refineries. This development represents a significant step in the national oil company's broader strategy to enhance operational efficiency and financial sustainability within the country's refining sector.
Executive Disclosure at Energy Summit in Abuja
Bayo Ojulari, the Group Chief Executive Officer of NNPC, revealed these discussions during his participation at the Nigerian International Energy Summit (NIES) held in Abuja. Ojulari emphasized that these talks are integral to NNPC's comprehensive plan to revive its refining assets by collaborating with experienced international operators who possess proven expertise in refinery management and operations.
The specific refinery involved in these negotiations has not been publicly disclosed, with Ojulari citing commercial sensitivity as the primary reason for maintaining confidentiality at this stage. He noted that the prospective Chinese investor, described as one of China's largest petrochemical companies, has already engaged in preliminary meetings with NNPC officials and is scheduled to conduct a physical inspection of the refinery facility as part of their comprehensive assessment process.
Equity Partnership Model Rather Than Outright Sale
Ojulari provided crucial clarification regarding the nature of the proposed arrangement, stating that NNPC is not planning an outright sale of any refinery assets. Instead, the company is exploring opportunities to sell down part of its equity to strategic partners who would assume operational responsibility while maintaining NNPC's ownership stake. This approach ensures that investors have meaningful skin in the game, fostering long-term commitment to the refinery's success and sustainability.
The NNPC chief executive explained that the company's board-approved strategy prioritizes partnerships with firms demonstrating strong track records in operating profitable refineries globally. Under this proposed model, experienced partners would lead day-to-day refinery operations while NNPC focuses on rebuilding internal capacity, enhancing technical skills, and strengthening support systems within the organization.
Addressing Nigeria's Persistent Refining Challenges
Nigeria's refining sector has faced significant operational challenges in recent years, with all three state-owned refineries experiencing extended shutdowns or undergoing rehabilitation processes. The Port Harcourt Refining Company was shut down for maintenance in May 2025, while operations at both the Warri and Kaduna refineries were suspended for comprehensive rehabilitation work.
Ojulari acknowledged that NNPC currently lacks the operational structure necessary to run profitable refineries independently, despite favorable global refining margins. He emphasized that bringing in experienced international operators is essential to complement NNPC's existing capabilities and establish refineries that operate on a commercially viable basis without relying on government funding.
The NNPC executive stressed that the company is not seeking contractors or routine maintenance arrangements, but rather full-fledged refinery operators willing to take both equity stakes and operational responsibility. He indicated NNPC's readiness to relinquish as much equity as required to secure sustainable partnerships that can ensure efficient, long-term refinery operations.
Background of Political Pressure and Financial Losses
Ojulari also addressed historical challenges, revealing that intense political pressure had previously compelled NNPC to keep state-owned refineries operational despite internal findings indicating substantial financial losses. Management reviews reportedly showed that refinery operations were eroding national value and recording what Ojulari described as monumental losses, even as public frustration grew over the significant investments committed to refinery rehabilitation over the years.
In November 2025, NNPC announced plans to pursue partnerships with private refinery operators following a comprehensive review of state-owned plants, as part of ongoing efforts to address longstanding operational issues within Nigeria's refining sector. The current discussions with the Chinese petrochemical firm represent a concrete implementation of this strategic shift toward collaborative operational models.
