The Nigerian National Petroleum Company Limited (NNPC) is assessing technical and financial partnership options to complete and operate the Port Harcourt and Warri refineries. This development comes as fuel prices continue to rise, with petrol selling between N1,400 and N1,500 per litre in some locations, and diesel above N2,000 per litre. The NNPC aims to restore the refineries to sustainable and commercially viable operations.
Petroleum marketers have urged the Federal Government to restart the government-owned refineries, citing the need to reduce dependence on imported petroleum products. Joseph Obele, National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria, emphasized that increased domestic refining would cushion the impact of rising international crude oil prices on Nigerians.
In response to concerns over the refineries' operational status, an NNPC senior official stated that the company is working to ensure any partnership entered into would be commercially sustainable. The official disclosed that NNPC had signed a Memorandum of Understanding with Sanjiang Chemical Company Limited on April 30, 2026, to explore technical and investment opportunities for the refineries and associated petrochemical development.
Preliminary technical work has commenced on two of Nigeria's major government-owned refining facilities. The parties have undertaken a preliminary technical assessment of the Warri Refinery and Petrochemical Plant and the Port Harcourt Refinery. This is part of NNPC's efforts to explore potential technical equity partnerships for the completion and operation of the refineries.
The proposed partnership framework includes refinery expansion, petrochemical development, and gas-based industrial opportunities. However, discussions and evaluations remain ongoing, and any definitive arrangements will be subject to satisfactory due diligence, commercial viability, and all applicable approvals.
The NNPC senior official added that the company would disclose further details when negotiations reach a significant stage. The company remains committed to restoring the refineries to sustainable and commercially viable operations, recognizing the public interest in fuel prices and the refineries' operational status.
The NNPC's efforts to revive the refineries are crucial in addressing Nigeria's fuel price challenges. With rising international crude oil prices, the need for increased domestic refining has become more pressing. The company's progress in evaluating partnership options and undertaking preliminary technical work will be closely watched by stakeholders.
Key points
- NNPC evaluates partnerships to restart Warri and Port Harcourt refineries amid rising fuel prices.
- The company aims to restore the refineries to sustainable and commercially viable operations.
- Preliminary technical work has commenced on the Warri Refinery and Petrochemical Plant and the Port Harcourt Refinery.
