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The Landlord Pivot: Can Private Management Resurrect Nigeria’s Most Troubled Refinery?

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Nigeria did reveal on Monday that it has just again resumed its operations on its Warri Oil Refinery

The Warri Refining and Petrochemical Company (WRPC) remains in a state of operational limbo, with the Nigerian National Petroleum Company (NNPC) Limited pivoting toward a new “landlord” model to save the facility from total obsolescence. Despite a $492 million “quick-fix” rehabilitation project by Daewoo Engineering and a brief attempt to restart in late 2024, the 125,000 barrels per day (bpd) plant was shut down again in early 2025 for “intervention works” and has yet to return to full service. NNPC is currently in advanced negotiations with the China Refinery and Petrochemical Company (CRPC) to either fully refurbish the existing units or co-locate a new Chinese-built refinery at the Warri site.

This struggle to revive state assets directly fuels the urgency behind the Dangote Refinery expansion as Warri and other national plants remain “sub-commercial” and uncompetitive, Dangote has fast-tracked its Phase 2 expansion to 1.4 million bpd to prevent a total domestic fuel monopoly and meet the supply gap left by the moribund state-run facilities.

The Warri Refining and Petrochemical Company (WRPC) remains in a state of operational limbo, with the Nigerian National Petroleum Company (NNPC) Limited pivoting toward a new "landlord" model to save the facility from total obsolescence.
The Warri Refining and Petrochemical Company (WRPC) remains in a state of operational limbo, with the Nigerian National Petroleum Company (NNPC) Limited pivoting toward a new “landlord” model to save the facility from total obsolescence.

January 4, 2025

Nigeria did reveal on Monday that it has just again resumed its Warri Refinery Operations. This project has been revived after a decade of quite a number of shutdowns. The shutdowns posed a challenge to one of a string of long-running challenges that have paralysed Africa’s largest crude exporter to a point that it had to import most of its fuel.

Moreover, the Nigerian government has also promised to revive most of its moribund refineries. These refineries have been hit with several years of neglect, infrastructure damage and even accusations of mismanagement.

Also read: The Dangote Petroleum Refinery Officially Commences Production: The Largest in Africa

The Newly Revamped Warri Refinery Factsheet

Capacity: 125,000 barrels per day

Location: Ekpan, Uwvie, and Ubeji areas of Warri

Products: It produces 13,000 metric tonnes per annum (MTA) of polypropylene and 18,000 MTA of carbon black

Recent Developments: The NNPCL Group Chief Executive Officer, Mele Kyari, announced the resumption of operations on December 30, 2024. Although the repairs are not yet 100% complete, the facility has commenced operations.

“As for now, the Warri Refinery Operations are already up and running. However, we have not finished it 100%,” Mele Kyari who is the head of the state oil firm NNPC revealed. This information was revealed during a tour that was made to the facility by government officials, the regulators and journalists.

When were the Warri Refinery Operations Stopped?

Warri Refinery Operations were shut in the year 2015. This was as a result of disrepair and shortages of crude oil. The Warr Oil Refinery possesses a capacity of 125, 000 barrels in just a single day. This facility was now running at a capacity of 60%. This plant has been under rehabilitation since the year 2021 at a cost of $898 million. The plant will now focus on the production of straight-run kerosene, diesel, and naphtha. This information was revealed by a statement that was signed by the presidential spokesperson Bayo Onanuga.

Its closure was in the year 2015. This was as a result of disrepair and shortages of crude oil.
Its closure was in the year 2015. This was as a result of disrepair and shortages of crude oil.

Other Refineries that Remain Shut

A total of four state-owned refineries which have a combined capacity of 445,000 bpd have been shut for years. These include the 110,000 bpd Kaduna plant which is located in the north and other three facilities located in the oil-rich Niger Delta inclusive of Warri.

In the previous month, NNPC stated that it had revived the 60,000 bpd Port Harcourt refinery that is located in the Niger Delta. It had set plans of reviving all the four refineries this year.

In privately-owned refineries, the 650,000 bpd Dangote Oil Refinery located in Lagos commenced its operations this year. This refinery was constructed by the Nigerian billionaire Aliko Dangote.

Also read: Rehabilitation of the 110,000 barrel per day (bpd) Kaduna Refinery in Nigeria 

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