NNPC rules out sale of Warri Refinery as scrap, begins Chinese-led technical assessment

THE Nigerian National Petroleum Company (NNPC) Limited has dismissed suggestions that the Warri Refinery and Petrochemicals Company should be sold as scrap, saying 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 Chinese firms, Sanjiang Chemicals and New Future Group, has begun a detailed technical assessment of the refinery. The exercise is expected to inform a final investment decision that could pave the way for the rehabilitation and commercial restart of the plant within the next 24 months, with an increased emphasis on petrochemical production.

NNPC Group Chief Executive Officer, Mr Bayo Ojulari, said the inspection forms part of a broader strategy to adopt a new operating model capable of restoring the refinery’s commercial viability after years of operational challenges and financial losses.

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According to Ojulari, the technical review by the Chinese partners is intended to determine the investments and upgrades required to reposition the refinery for sustainable long-term operations.

The Warri refinery was shut down last year after briefly resuming production, leading to renewed calls for the disposal of the country’s aging state-owned refineries. However, NNPC maintained that those advocating the sale of the facilities were acting on misinformation and overlooking the assets’ long-term potential.

The company argued that the interest shown by the Chinese firms reinforces its position that the refinery remains commercially viable and should not be written off.

NNPC explained that Sanjiang Chemicals, a leading Chinese petrochemical company, and New Future Group, an Africa-focused investment firm, are expected to finance, modernise and operate the refinery if the project receives final approval following the ongoing assessment.

The oil company added that the partnership is designed to inject technical expertise, operational efficiency and fresh investment into the refinery while ensuring it remains a strategic national asset under a commercially sustainable framework.

NNPC also rejected reports alleging that it had started disposing of equipment from the refinery as scrap, stressing that no approval had been granted for the sale of refinery components and that the assets remain integral to the planned rehabilitation programme.