The Nigerian National Petroleum Company Limited has signed a new agreement with two Chinese firms to fast-track the long-delayed rehabilitation and commercial restart of Nigeria’s refineries, while opening the door to technical equity partnerships.
The Memorandum of Understanding (MoU) was signed with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd in Jiaxing City, China, on April 30, 2026.
NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, executed the agreement alongside Sanjiang Chairman Guan Jianzhong and Xingcheng Chairman Bill Bi.
In a statement issued on Monday by the company’s Chief Corporate Communications Officer, Andy Odeh, NNPC said the MoU provides a framework for a potential Technical Equity Partnership aimed at completing outstanding rehabilitation work and ensuring the long-term efficiency of the Port Harcourt and Warri refineries.
“The NNPC Ltd has signed a Memorandum of Understanding (MoU) with two Chinese companies… for collaboration through a potential Technical Equity Partnership in support of the completion and operation of the Port Harcourt and Warri Refineries,” the statement said.
Beyond rehabilitation, the partnership is expected to extend to full-scale operation and maintenance of the facilities, with a focus on achieving “best-in-class, sustainable performance.”
NNPC added that the collaboration would also explore expansion projects to enable the refineries to produce cleaner fuels and higher-value petroleum products in line with global standards.
Ojulari described the agreement as the outcome of over six months of intensive technical and commercial engagements, noting that all parties see “mutually beneficial opportunities” in the long-term profitability of Nigeria’s refining assets.
“This is an important step towards identifying technical equity partners to restart and expand NNPC’s refineries, and to explore opportunities in co-located petrochemicals and gas-based industries,” he said.
He explained that the initiative marks a strategic shift from traditional contractor-led rehabilitation to a performance-driven partnership model based on shared risks and returns.
The new approach represents a departure from past turnaround maintenance programmes, many of which failed to deliver sustainable results despite significant investments.
Under the proposed framework, the Chinese partners are expected to contribute engineering expertise, operational discipline, and investment capacity, with returns tied directly to refinery performance.
NNPC said the collaboration could also lead to the development of gas-based industrial hubs around the Port Harcourt and Warri complexes, transforming them into integrated energy and petrochemical centres.
Such hubs are expected to unlock additional value from Nigeria’s gas reserves, while supporting domestic manufacturing and export-oriented industries.
The company, however, noted that the MoU is non-binding and subject to regulatory approvals and the conclusion of detailed commercial negotiations.
The agreement aligns with Ojulari’s earlier push at the Nigeria International Energy Summit 2026 for global partners to take equity stakes in Nigeria’s refining sector.
At the summit, he argued that Nigeria’s refining challenges are not only financial but also technical and operational, requiring experienced partners with proven track records.
“What we are doing differently is moving away from just funding projects to bringing in partners who have skin in the game, partners who will operate, optimise, and guarantee performance,” he said.
Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna have suffered decades of underperformance, frequent shutdowns, and failed rehabilitation efforts, forcing the country to rely heavily on imported petroleum products.
Despite multiple interventions, the facilities have consistently operated far below capacity, raising concerns over efficiency and value for money.
The Federal Government has prioritised refinery revival as part of its broader energy security strategy, alongside support for private investments such as the Dangote Refinery. With the latest China deal, NNPC is betting on a new partnership model that ties investment returns to performance, in a renewed push to unlock the long-elusive potential of Nigeria’s refining sector.
