NNPC in Talks With Chinese Firm to Revive Nigerian Refineries

The Nigerian National Petroleum Corporation (NNPC) is engaging in advanced talks with a Chinese petrochemical firm to seek investment for the revival of its four long-troubled refineries. Bayo Ojulari, the NNPC Group Chief Executive, disclosed this during an international energy summit in Abuja.

The refineries in Warri and Kaduna have been operating at significant losses due to high operational costs and low processing volumes. The NNPC board has approved a strategy to bring in technical partners capable of sustaining operations and restoring profitability.

This potential equity partnership with the Chinese company signifies a shift towards more commercially-driven operations in the oil and gas sector. The move comes as Nigeria has struggled for decades to rehabilitate its refineries, leading to low domestic fuel production and heavy reliance on imports.

The partnership aims to leverage the expertise of the Chinese firm, known for owning one of the largest petrochemical plants in China, to improve the efficiency and output of Nigeria's refineries.