Nigeria’s state-owned oil company, the Nigerian National Petroleum Corporation (NNPC), is in discussions with a Chinese firm to revive one of its four refineries, the company’s Chief Executive, Bayo Ojulari, announced on Wednesday.
Ojulari said NNPC is looking for experienced operators as equity partners rather than relying on contractors to restore its aging and underperforming refineries. An internal review conducted after he assumed office last April revealed that the plants were operating at heavy losses, with high operating costs and low processing volumes.
“NNPC’s board has approved a strategy to bring in refinery operators with proven expertise rather than contractors,” Ojulari said. “I’m just coming from a meeting with one of the potential investors. They are going to the refinery tomorrow to inspect. It’s a Chinese company that has one of the biggest petrochemical plants in China.”
The NNPC chief executive emphasized that the company is not selling its refineries but plans to relinquish a portion of their equity to partners to allow the plants to self-finance their operations.
Nigeria has struggled for years to rehabilitate its refineries, which have long operated far below capacity, forcing the country to rely heavily on imported fuel. Ojulari said the temporary halt of the plants coincided with the launch of the Dangote Refinery, providing “breathing space” for domestic fuel supply while options for reviving the NNPC facilities are explored.
The government hopes that strategic partnerships with experienced operators will reverse the trend of underperformance and reduce the nation’s dependence on imported petroleum products.
