NNPC Rejects Calls to Sell Warri Refinery, Chinese Firms Begin Technical Assessment

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has dismissed suggestions that the Warri Refinery and Petrochemicals Company should be sold as scrap, insisting the facility remains a strategic national asset with the potential to return to profitable operations.

The national oil company disclosed that a team of 35 engineers from two Chinese firms—Sanjiang Chemicals and New Future Group—has commenced a comprehensive technical assessment of the refinery as part of plans to revive its operations under a new commercial model.

According to NNPC Group Chief Executive Officer, Bayo Ojulari, the assessment is a critical step toward a final investment decision that could see the refinery restored to sustainable operations within the next 24 months, with greater emphasis on petrochemical production.

“We will not sell the refineries as scrap. These refineries remain viable national assets,” Ojulari said, adding that the inspection is expected to determine the scope of rehabilitation needed to reposition the facility for long-term profitability.

The Warri refinery was shut down last year after briefly resuming operations, a development that reignited calls from some quarters for the disposal of the country’s state-owned refineries. However, NNPC maintained that such calls are based on misinformation and do not reflect the actual condition or economic potential of the facilities.

The company said the interest shown by the Chinese partners underscores confidence in the refinery’s viability.

If the project proceeds beyond the assessment stage, Sanjiang Chemicals—a leading Chinese petrochemical company—and New Future Group, an investment firm with interests across Africa, are expected to partner with NNPC to finance, rehabilitate and operate the refinery.

Officials involved in the inspection reportedly concluded that the Warri Refinery remains a valuable asset capable of being retooled for efficient and profitable operations.

Responding to concerns over the involvement of foreign partners, NNPC said the proposed collaboration is intended to bring in technical expertise, operational efficiency and investment while ensuring the refinery remains under strategic national ownership.

The company also denied reports alleging that refinery equipment was being disposed of as scrap, stressing that no approval has been granted for the sale of refinery components.

“NNPC has not authorised the sale of scrap materials or refinery components, as they remain viable national assets,” the company stated.