NNPC Inks Strategic Deal with Chinese Firms to Overhaul Port Harcourt and Warri Refineries

The Nigerian National Petroleum Company (NNPC) Limited has signed a Memorandum of Understanding (MoU) with two Chinese firms—Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd—to complete the long-delayed rehabilitation and operation of the Port Harcourt and Warri refineries.

Signed on April 30, 2026, in Jiaxing City, China, the agreement sets the stage for a Technical Equity Partnership (TEP) aimed at moving away from purely contractor-led rehabilitation toward deeper operational and financial collaboration.

Asset Scope and Planned Capacities

The MoU covers both the Old and New Port Harcourt refineries and the Warri refinery, which have operated intermittently in the past and are currently offline for technical and financial reviews.

Source: NNPC

• Technical Equity Partnership (TEP): Under the agreement, the partners will tie their financial returns directly to the sustainable performance of the assets.

• Petrochemical Integration: Beyond refining crude, the collaboration considers the expansion of petrochemical production capacities and the development of co-located, gas-based industrial hubs at the sites.

Strategic Implications for the Downstream Sector

The strategic pivot comes after previous Turnaround Maintenance (TAM) interventions—which saw significant capital injected—failed to deliver sustained domestic fuel output.

• Import Substitution: Bringing the combined 335,000 b/d capacity online is central to reducing Nigeria’s dependence on imported fuel, working alongside the operational capacity of the Dangote Refinery.

• Efficiency Focus: NNPC’s management, led by Group Chief Executive Officer Bashir Bayo Ojulari, noted that the model is designed to ensure accountability, as the partners will only profit if the facilities run optimally.