NNPC Strikes Deal with China to Revitalize Key Refineries
NNPC Ltd has signed an MoU with two Chinese companies, Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd, to restart and expand Nigeria’s Warri and Port Harcourt refineries. This technical equity partnership aims to complete outstanding work, upgrade facilities for cleaner products, expand capacity, and boost petrochemical output, marking a significant step in revitalizing Nigeria's domestic refining capabilities.
Nearly one year after announcing a planned shutdown for maintenance of the Port Harcourt Refining Company.
The Nigerian National Petroleum Company (NNPC) Limited says it has signed a memorandum of understanding (MoU) with two Chinese firms to explore a partnership for the completion and operation of the Port Harcourt and Warri refineries.
The agreement was signed with Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd in Jiaxing City, China, on April 30.
According to a statement by Andy Odeh, NNPC chief corporate communications, on Monday, the proposed collaboration will be structured as a technical equity partnership.
The framework, the company said, will cover the completion of outstanding work at the refineries, as well as their operation and maintenance.
NNPC added that the partnership will also explore the expansion and upgrade of the facilities to improve efficiency and profitability.
Commenting on the deal, Bashir Ojulari, group chief executive officer (GCEO) of NNPC, said the agreement followed months of engagement between the parties.
“All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria,” he said.
Ojulari said the MoU represents a step towards identifying technical partners to restart and expand the refineries.
He added that the discussions will also cover the development of petrochemical capacity and gas-based industrial hubs around the facilities.
“The MoU is a significant step on the journey towards identifying potential technical equity partners to restart and expand NNPC’s refineries,” he said.
According to the statement, NNPC said the agreement reflects the intention of the parties to continue discussions, with final arrangements subject to approvals.
On July 11, 2025, Ojulari said it is becoming a bit more complicated to revamp state-owned refineries.
Three months later, NNPC said it had commenced a comprehensive technical and commercial review of the moribund refineries in Warri, Port Harcourt, and Kaduna.
In November last year, Olu Verheijen, special adviser to President Bola Tinubu on energy, said the federal government is open to selling the refineries of NNPC.
NNPC acknowledged Nigeria's historical challenges with its state-owned refineries, which have consistently operated below capacity for decades, leading to a heavy reliance on imported refined petroleum products despite the country being one of Africa’s largest crude oil producers.
The rehabilitation of the Port Harcourt and Warri refineries is a cornerstone of the government's broader initiative to restore domestic refining capabilities.
This planned collaboration is an integral component of NNPC's overarching strategy to enhance efficiency and bolster the operational aspects of its refining assets.
The agreement signifies the parties' intent to continue robust discussions, with any final deal contingent upon further negotiations and the customary regulatory approvals.
The potential for this partnership also extends to the development of co-located industrial hubs, designed to support both downstream and gas-based activities, thereby creating a more integrated and robust energy sector.