The Nigerian National Petroleum Company Limited has moved its proposed partnership for the Port Harcourt and Warri refineries into a detailed evaluation phase, despite continuing public criticism over plans to involve private operators after billions of dollars had already been committed to rehabilitation.
NNPC Group Chief Executive Officer, Bayo Ojulari, said the memorandum of understanding recently signed with prospective partners had advanced to a due diligence stage designed to test the technical, financial and commercial strength of the proposed arrangement.
Ojulari explained that the objective is not merely to restart equipment but to create a sustainable operating model that can keep the refineries commercially viable over the long term. He said the facilities require the right mix of technical knowledge, capital discipline and business experience to avoid another cycle of repair without reliable performance.
He clarified that the memorandum is not a binding contract. Rather, it provides a framework for both sides to examine possible areas of cooperation before any final decision is taken. According to him, prospective partners are also bearing the full cost of the evaluation, a step he said protects NNPC from additional financial exposure and allows the process to remain evidence driven.
The NNPC chief said the broader plan goes beyond refining crude oil. He noted that the company is looking at deeper investments in petrochemicals, gas based industries and methanol production as part of efforts to strengthen Nigeria’s downstream value chain and improve energy security.
The clarification follows strong public reaction to reports that NNPC was considering outside operators for the refineries after repeated assurances that rehabilitation work had brought them closer to sustained operations. Critics have questioned whether the earlier spending delivered value and whether private involvement at this stage signals deeper problems with the rehabilitation programme.
In a related development, crude oil production by the Organisation of the Petroleum Exporting Countries rose sharply in June, according to a Reuters survey. The report said output from the 11 member group climbed to 19.43 million barrels per day as producers restored supplies disrupted by the Iran conflict and shipping uncertainty around the Strait of Hormuz.
Kuwait and Iran recorded the strongest increases, while Saudi Arabia, Iraq, Nigeria and Libya also posted gains. Despite the rebound, the survey indicated that OPEC output remained below agreed production targets.Type
