The Nigerian National Petroleum Company Ltd (NNPC) has ruled out selling the Warri Refinery and Petrochemicals Company as scrap, saying Chinese firms have begun technical assessments aimed at restoring the plant to sustainable operations within 24 months.
NNPC Group Chief Executive Officer, Bayo Ojulari, said a team of 35 engineers from Sanjiang Chemicals and New Future Group was carrying out a comprehensive inspection of the facility ahead of a final investment decision.
“We will not sell the refineries as scrap. These refineries remain viable national assets,” Ojulari said. “The Chinese partners are carrying out a detailed assessment of the facility ahead of a final investment decision that will reposition the refinery for sustainable operations.”
Sanjiang Chemicals is a major Chinese petrochemicals company. New Future Group is an investment firm focused on Africa. Under the proposal being evaluated, the two companies would finance, retool and operate the refinery if the project proceeds.
NNPC said the partnership was designed to bring technical expertise and capital needed to make the plant commercially viable, while keeping ownership of the asset with the state.
“Our inspection shows that the Warri Refinery remains a valuable asset that can be retooled and returned to profitable operations,” the company said.
Warri refinery, with a nameplate capacity of 125,000 barrels per day, is one of three state-owned refineries in Nigeria. The others are Port Harcourt, 210,000 bpd, and Kaduna, 110,000 bpd.
The plants have run well below capacity for more than a decade because of poor maintenance, funding gaps, pipeline vandalism and crude supply disruptions. Warri was shut down last year after a brief restart, fuelling renewed calls for the government to sell the refineries as scrap.
NNPC dismissed those calls as based on “misinformation” and said interest from Chinese companies confirmed the assets still had value.
The company also denied reports that it had begun disposing of refinery equipment as scrap, saying no approval had been given for the sale of components.
Officials said the revival plan for Warri would place greater emphasis on petrochemicals production, in line with government efforts to expand Nigeria’s gas-based industries and reduce import dependence.
“The partnership is designed to bring technical expertise, operational efficiency and investment required to make the refinery commercially viable,” NNPC said.
The evaluation phase is expected to determine technical feasibility and commercial terms before any final agreement is signed.