A major petroleum products marketer, Dr. Joseph Obele, has thrown his weight behind moves by the Nigerian National Petroleum Company Limited (NNPCL) to revive the Port Harcourt Refinery through a Joint Venture Company (JVC) arrangement with a Chinese firm.
Obele, who is the National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and a lecturer at Ignatius Ajuru University of Education, Port Harcourt, described the development as commendable and strategic.
According to him, a Chinese technical team is currently at the refinery conducting facility assessments and feasibility studies aimed at determining the plant’s present condition, including a comprehensive review of its assets and liabilities.
“I can confidently confirm that a foreign Chinese technical team is presently at the Port Harcourt Refinery to ascertain the current status of the plant,” he stated. “The firm is carrying out detailed technical evaluations and appraisals in preparation for potentially assuming responsibility for managing and operating the national asset.”
Obele explained that the proposed arrangement appears to mirror the Nigeria LNG (NLNG) model in Bonny, where NNPCL operates in partnership with private investors under an equity structure. Under the contemplated framework, NNPCL may relinquish a significant portion of its equity to allow a technically competent private firm to manage and operate the refinery.
He commended the Group Chief Executive Officer of NNPCL, Engr. Bayo Ojulari, for what he described as a proactive and private sector–driven approach to resolving longstanding challenges at the refinery.
While the name of the Chinese firm has not been officially disclosed, Obele said his due diligence indicates that the company is a reputable downstream operator with vast experience in petroleum and petrochemical operations, and a track record of integrity and operational competence.
He, however, stressed that the process must remain transparent and free from political interference.
“My sincere hope is that the process remains devoid of political coloration and is driven by reputation, technical competence, transparency and financial capacity,” he said.
Obele also praised host communities for maintaining peace throughout the ongoing process, noting that stability would boost investor confidence. He urged them to prepare for constructive engagement, particularly in negotiating Memoranda of Understanding (MOUs) and securing dividends in line with the Petroleum Industry Act (PIA), similar to benefits enjoyed by host communities of Indorama Petrochemicals.
He said adopting a JVC model rather than outright privatization — as previously suggested by former Vice President Atiku Abubakar — could offer a more strategic alternative at this time, especially if it removes direct government management of the refinery while retaining equity participation.
According to him, successful implementation of the equity partnership could generate employment, stimulate business growth, create equity opportunities for host communities and increase government revenue through taxation.
Obele called on NNPCL to expedite the process, noting that Nigerians are eager to see the Port Harcourt Refinery fully revived and operating at optimal capacity for the benefit of the national economy.
