Nigerian National Petroleum Company Limited (NNPC Ltd) has struck a new deal with two Chinese companies in a fresh bid to get the country’s long-dormant refineries back on track.
The agreement, signed as a Memorandum of Understanding (MoU), brings Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd into a potential technical partnership to finish work on the Port Harcourt and Warri refineries and run them long-term.
The MoU was signed in Jiaxing City, China, on 30 April 2026. NNPC Ltd’s Group Chief Executive Officer, Bashir Bayo Ojulari, put pen to paper alongside Sanjiang Chemical chairman Guan Jianzhong and Xingcheng Industrial Park chairman Bill Bi.
Moving Beyond Repairs to Real Operations
According to NNPC Ltd’s Chief Corporate Communications Officer, Andy Odeh, the partnership goes further than rehabilitation. It covers full-scale operation and maintenance of both refineries to ensure they run efficiently and sustainably.
The plan also looks at future expansion. The goal is to reposition the refineries so they can produce cleaner fuels and higher-value petroleum products that meet modern global standards.
Speaking after the signing, Ojulari said the deal followed more than six months of detailed technical and commercial talks.
"All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria, and the collective weight required for success," he said.
A New Model: Shared Risk, Shared Reward
This indicates a clear shift from previous contractor-led repairs. Under the proposed technical equity model, the Chinese partners would not just provide engineering support. They would invest, operate, and tie their returns directly to how well the refineries perform.
"This is an important step on the journey towards identifying potential technical equity partner or partners to restart and expand NNPC’s refineries, and to explore opportunities in co-located petrochemicals and gas-based industries," Ojulari added.
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In practice, that means if the refineries run well, the partners profit. If they don’t, everyone loses. It’s a performance-based approach aimed at ending decades of costly turnaround projects that delivered little output.
More Than Just Fuel
The scope of the deal includes developing gas-based industrial hubs around the Port Harcourt and Warri sites. The idea is to transform them into integrated energy and petrochemical centres. That could unlock value from Nigeria’s gas reserves and support manufacturing and exports.
NNPC Ltd stressed that while the MoU shows serious intent, any binding contracts will still need regulatory approval and further commercial negotiations.
Why This Approach?
At the Nigeria International Energy Summit 2026, Ojulari had argued that Nigeria’s refining problems are technical and operational, not just financial. Experienced global partners with "skin in the game" are needed.
"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.
"The days of spending billions on rehabilitation without sustainable output are behind us. We are now focused on partnerships that deliver value, technology transfer, and operational excellence," he said.
He also announced that modern refineries worldwide operate as industrial platforms, not standalone fuel plants. "Refineries must evolve into integrated industrial platforms. That is where the future lies, petrochemicals, fertilisers, gas monetisation. That is how you create real economic value," Ojulari said.
The Backdrop
Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna have struggled for decades with shutdowns, underperformance, and failed repairs.
Despite repeated maintenance programmes, they have consistently run far below capacity, forcing heavy reliance on imported fuel.
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