Oil & Gas
ENERGY experts have endorsed NNPCL’s refinery partnership with two Chinese firms, describing it as a strategic move for Nigeria’s energy future.
They said the agreement could strengthen energy security, improve refining capacity and support export-driven industrial growth.
The experts spoke in separate interviews with the News Agency of Nigeria on Thursday in Lagos.
Prof. Ken Ife, President, Institute of Professional Economist and Policy Management, described the arrangement as commercially promising.
Ife is widely known for advising governments, institutions and private investors on economic transformation and industrial policy.
He said the Chinese companies brought complementary technical, financial and operational strengths to the partnership.
“Beyond NNPC’s previous investment failures, Sanjiang has proven expertise in vertically integrated petrochemical production,” he said.
He said the company had built strong capacity across ethylene, polypropylene and related industrial products.
According to him, Sanjiang’s industrial experience will improve refinery efficiency and downstream productivity.
Ife also praised Xingcheng’s industrial park management capabilities and infrastructure development expertise.
“Its relationship with Xingcheng supports horizontal integration and the building of massive industrial ecosystems,” he said.
He explained that the arrangement could create a broader energy and manufacturing cluster.
Ife said the ownership structure could follow the Nigeria LNG Ltd. governance model.
He said government would retain 49 per cent equity, while technical partners hold majority operational stakes.
According to him, private partners will oversee construction, maintenance, procurement and financing arrangements.
“They will approach Chinese EXIM banks and secure long-term financing support,” he said.
He added that guaranteed offtakers would improve profitability and market sustainability.
Ife described the proposed energy park as potentially transformative for Nigeria’s economy.
He urged NNPCL to maintain transparency and accountability throughout implementation.
Dr Joseph Nwakwue, Partner, Zera Advisory and Consulting, also welcomed the development.
NAN reports that Nwakwue has decades of experience in petroleum operations, energy advisory services and upstream sector consulting.
He said Nigeria must support every credible effort aimed at restoring refining operations.
“Any workable step towards refinery revival deserves serious support,” he said.
He urged NNPCL to study previous failures before implementing fresh strategies.
“Management must understand what failed before attempting another operational model,” Nwakwue said.
He said successful refinery operations would positively affect the wider economy.
According to him, local refining would create direct and indirect employment opportunities.
He said improved fuel production would stabilise domestic petroleum supply chains.
Nwakwue added that local refining would increase healthy competition in the downstream sector.
He said this would complement private refining investments, including the Dangote Group refinery.
Dr Ayodele Oni, Partner and Chair of Energy and Natural Resources Practice Group, Bloom Field, also supported the initiative.
Oni specialises in energy law, project finance and natural resources regulation across Africa.
He said technical equity partnerships could revive underperforming national assets.
“That opportunity exists only with transparency, governance and enforceable operational oversight,” Oni said.
He noted that previous refinery mismanagement had damaged public confidence.
According to him, many Nigerians remain sceptical about fresh refinery reforms.
He said equity financing would reduce dependence on public funds. “Investors should take the risks and share the rewards when operations improve,” he said.
NAN further reports that NNPCL recently signed the Memorandum of Understanding in Jiaxing City, China.
The agreement involved Sanjiang Chemical Company and Xingcheng Industrial Park Management Company.
The deal covers completion and operation of Port Harcourt and Warri refineries.
NNPCL Group Chief Executive Bashir Ojulari signed the agreement on behalf of the body. (NAN)
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Tags: energy NNPCL refinery