The Nigerian National Petroleum Company (NNPC) Limited has confirmed ongoing discussions with a Chinese firm over a potential partnership involving one of Nigeria’s state-owned refineries.
Speaking on Wednesday at the Nigerian International Energy Summit (NIES) in Abuja, NNPC’s Group Chief Executive Officer, Bayo Ojulari, said the talks are centred on attracting an experienced refinery operator rather than a contractor.
Ojulari declined to disclose which refinery is under consideration — Warri, Port Harcourt or Kaduna — citing commercial sensitivity. He also did not name the Chinese company but described it as one of the largest petrochemical operators in China.
“I’m just coming from a meeting with one of the potential investors, where we are looking at their plans. They are going to the refinery tomorrow to inspect,” Ojulari said.
According to him, the company’s board-approved strategy is to partner with firms that have a proven track record in owning and running refineries, rather than those offering operations and maintenance services.
“We are not looking for contractors or O&M providers. We are looking for an entity that runs refineries to come in,” he said.
Ojulari clarified that the plan does not involve selling off Nigeria’s refineries outright. Instead, NNPC is considering selling down part of its equity to ensure partners have a financial stake in the success of the facilities.
“When you say sell, we will not say we are selling Nigerian refineries. What we are looking at is selling down some of our equity so they have skin in the game,” he explained.
Under the proposed arrangement, the foreign partners would take the lead in refinery operations, while NNPC focuses on rebuilding internal capacity, skills and support systems.
“Our solution is about putting a sustainable structure in place for the refineries to finance themselves and run like real businesses,” Ojulari said.
He admitted that NNPC currently lacks the operational capacity to run profitable refineries on its own, despite strong global refining margins.
“There’s no way NNPC — with the structure we have today — can run a profitable refinery. We need additional operational capacity to complement what we already have,” he added.
Ojulari said the company is prepared to give up as much equity as necessary to secure long-term, sustainable partnerships.
Nigeria’s refining challenges persist despite repeated rehabilitation efforts. The Port Harcourt Refining Company was shut down for maintenance in May 2025, while operations at the Warri and Kaduna refineries were also suspended for rehabilitation.
In November, NNPC announced plans to partner with private refinery operators after a review of the underperforming plants.
