The Nigerian National Petroleum Corporation (NNPC) has selected two Chinese companies, Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd, for a potential technical equity partnership to revive and operate Nigeria’s Port Harcourt and Warri refineries, according to NNPC Group Chief Executive Officer Bayo Ojulari. The decision, announced on Tuesday during a press briefing at NNPC Towers in Abuja following the release of the company’s 2025 financial results, comes amid skepticism about the firms’ technical capacity and track record. Ojulari emphasized that the selection followed a nine-month evaluation process involving over 50 potential partners, narrowing the list to approximately 20 before finalizing the Chinese companies.
Ojulari addressed concerns raised by critics and media outlets, including Premium Times, about the choice of Chinese firms. He stated that the NNPC considered numerous international and local entities but found that most sought equity participation or control over the refineries. “Most of the other companies we approached wanted us to provide them with equity or allow them to take over the refinery,” he said. “Some wanted us to sign agreements that would give them significant control over the project.” The Chinese firms, in contrast, aligned with NNPC’s goal of developing a sustainable refinery operation, according to Ojulari. “They are the only ones that have demonstrated the level of alignment we are looking for,” he said, adding that the partnership would prioritize long-term investment over short-term contracts.
The NNPC CEO defended the companies’ credentials, citing independent due diligence conducted by the corporation. Ojulari revealed that he personally visited the Chinese firms’ facilities, including a major petrochemical plant in China, and confirmed their technical expertise. “These are people who operate one of the largest petrochemical plants in China, with significant production capacity,” he said. He also highlighted the companies’ involvement in a major Chinese refinery, noting their access to industry talent and technical know-how. “Petrochemical plants are even more complex than refineries, as those of us with engineering knowledge understand,” he added.
Ojulari used an analogy to distinguish the desired partnership model from traditional contractor arrangements. “It is like hiring a taxi driver to transport your luggage from your home to the market,” he said. “The driver’s responsibility is simply to get you there. That is the kind of arrangement we want to avoid. We need a partner that has a genuine stake in the success and sustainability of the refinery.” He stressed that the Chinese companies’ approach aligns with NNPC’s vision of shared investment and long-term operational success.
The decision to partner with the Chinese firms follows years of operational challenges at Nigeria’s state-owned refineries. Nigeria’s four major refineries—Port Harcourt Refining Company (210,000 barrels per day), Kaduna Refining and Petrochemical Company (110,000 bpd), and Warri Refining and Petrochemical Company (125,000 bpd)—have struggled with inefficiencies despite significant government funding. The Warri Refinery, which reopened in December 2024, faced a shutdown in January 2025 due to safety issues. The Port Harcourt Refinery also experienced an outage in May 2024 for scheduled maintenance, while a comprehensive technical and commercial review of the three refineries was initiated in October 2024 to address performance gaps.
Ojulari acknowledged the public’s skepticism but urged Nigerians to scrutinize claims about the project. “When you embark on a strategy of this nature, there will always be people who are unhappy with your decisions,” he said. He attributed opposition to the strategy to efforts to address systemic leakages and protect national interests, which could threaten the livelihoods of certain stakeholders. “When you take steps to stop certain leakages in the system and protect Nigeria’s interests, some people will inevitably be disadvantaged,” he said. “This is part of the process of building a sustainable energy sector.”
The NNPC boss also highlighted his 35 years of industry experience as a basis for his assessment of the Chinese companies. “You cannot have someone like me, who has spent 35 years in the industry, travel to China, return to Nigeria and tell Nigerians that the companies building refineries should be asked to leave,” he said. He reiterated that the corporation would continue to verify the credibility of claims about the project. “When people begin to circulate misleading information, we must make an effort to identify the sources and establish the facts,” he added.
The proposed technical equity partnership aims to complete outstanding work at the Port Harcourt and Warri refineries while ensuring efficient operation and maintenance. NNPC stated that the arrangement would focus on achieving “best-in-class, sustainable performance.” Over 30 officials from the Chinese companies have visited Nigeria to assess the refineries, with some spending months on the project. However, Ojulari clarified that a final agreement has not yet been signed. “We have not yet signed a final agreement with them, but they are the only ones that have demonstrated the level of alignment we are looking for,” he said.
Nigeria’s refineries have long been a focal point of national energy policy. Despite their combined installed capacity of 445,000 barrels per day, the facilities have consistently operated below capacity due to maintenance issues, corruption, and mismanagement. The government has sought strategic investors and technical partners to reduce reliance on imported petroleum products and enhance domestic refining capacity. The current initiative with the Chinese firms is part of broader efforts to modernize the sector and align with the Petroleum Industry Act’s mandate for NNPC to act as a supplier of last resort.
Ojulari’s comments come amid growing public scrutiny of NNPC’s operations. The corporation’s 2025 financial results showed a 33.3% increase in profit to N7.2 trillion, but critics argue that profitability has not translated into improved refinery performance. The Warri Refinery’s recent shutdown and the Port Harcourt Refinery’s maintenance outage underscore the challenges of maintaining operational stability. “The goal of the overhaul is to position the corporation for its big role as a supplier of petroleum products of last resort,” Ojulari said, emphasizing the need for sustainable and profitable operations.
The selection of Chinese firms has also sparked debates about Nigeria’s energy sovereignty. Some analysts question whether partnering with foreign entities aligns with the country’s long-term interests. However, Ojulari defended the decision, stating that the Chinese companies’ expertise and commitment to long-term investment are critical for the refineries’ revival. “Our vision is to build something sustainable, with a partner that is prepared to invest its own resources and expertise in the project,” he said.
Public interest implications of the partnership extend beyond technical and financial considerations. The refineries’ operational success could impact Nigeria’s energy security, inflation rates, and trade balances. A functional refining sector would reduce the need for costly fuel imports, stabilize domestic prices, and create jobs. However, the project’s success hinges on transparent governance, effective oversight, and the ability to address systemic challenges that have plagued the sector for decades.
Ojulari’s remarks reflect a broader shift in NNPC’s strategy toward partnerships that prioritize sustainability over short-term gains. The corporation has also faced pressure to address corruption and inefficiencies, which have historically undermined its operations. By selecting partners with a vested interest in the refineries’ long-term success, NNPC aims to mitigate risks associated with contractor-driven projects that often lack accountability.
The Chinese firms’ involvement marks a significant step in Nigeria’s energy sector transformation. While challenges remain, the partnership represents an effort to leverage international expertise for domestic development. Ojulari’s emphasis on due diligence, alignment with strategic goals, and long-term investment underscores the corporation’s commitment to redefining its role in Nigeria’s energy landscape. As the project progresses, stakeholders will closely monitor its implementation and impact on the nation’s refining capacity and energy security.
The NNPC’s collaboration with the Chinese companies is part of a larger trend of African nations seeking strategic partnerships to modernize critical infrastructure. Nigeria’s energy sector, in particular, has been a focal point for such initiatives, with the government aiming to reduce dependence on imports and enhance self-sufficiency. The success of this partnership could serve as a model for future collaborations, provided that transparency and accountability are maintained throughout the process.
Ojulari’s address concluded with a call for public trust in the NNPC’s decision-making. “Let us not take all these comments and reports at face value,” he urged. “We have conducted independent due diligence on the company, and we will continue to verify the credibility of those making claims about the project.” His remarks highlight the delicate balance between addressing public concerns and pursuing long-term strategic goals in Nigeria’s energy sector.
The ongoing efforts to revitalize Nigeria’s refineries underscore the complexities of modernizing a critical national asset. While the partnership with the Chinese firms presents opportunities for improvement, its success will depend on sustained commitment, effective governance, and the ability to overcome historical challenges. As the NNPC moves forward, the focus remains on achieving operational excellence and ensuring that the refineries contribute meaningfully to Nigeria’s economic and energy security.
The selection of the Chinese companies for the Port Harcourt and Warri refineries has ignited a national conversation about Nigeria’s energy future. With the potential to enhance domestic refining capacity and reduce reliance on imports, the project holds significant promise. However, its outcome will depend on the ability of all stakeholders to navigate the challenges of implementation, maintain transparency, and prioritize the public interest in the long term.