The Nigerian National Petroleum Company Limited (NNPCL) has begun discussions that could hand Chinese investors a majority stake in the Port Harcourt and Warri refineries under a new equity partnership arrangement designed to revive and reposition the facilities.
The proposed deal follows the signing of a Memorandum of Understanding between NNPC and two Chinese firms — Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd.
The agreement was signed on April 30, 2026, in Jiaxing City, China, by the Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, alongside Chairman of Sanjiang Chemical Company, Guan Jianzhong, and Chairman of Xinganchen Industrial Park Operation and Management Co. Ltd, Bill Bi.
Sources familiar with the discussions said the arrangement is being designed around an NLNG-style model that could allow the Chinese firms to hold about 51 per cent equity in the refineries while participating in governance and long-term operations.
According to officials at the national oil company, the framework extends beyond conventional refinery rehabilitation contracts and focuses on technical equity participation aimed at restoring sustainable refinery operations.
Under the proposed partnership, the Chinese companies are expected to help complete outstanding engineering, procurement, and construction work at both refineries. The deal also covers operations and maintenance services intended to improve efficiency, reliability, and safety standards.
NNPC officials said the planned upgrades would expand refining capacity, improve profitability, and raise fuel production to cleaner specifications.
The agreement also includes plans to develop petrochemical and gas-based industrial hubs around the refinery complexes. The proposed industrial expansion is expected to support gas-based projects and improve downstream industrial activities.
“The scope includes capacity expansion, yield optimisation, petrochemical integration, and compliance with clean fuel standards and exploration of gas-based industrial projects in Nigeria,” an NNPC official said anonymously.
Speaking after the signing ceremony, Ojulari described the MoU as a major milestone after more than six months of discussions between NNPC and the Chinese firms.
“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.
Ojulari added that the agreement represented an important stage in identifying technical equity partners capable of restarting and expanding the refineries.
“The MoU is a significant step on the journey towards identifying potential technical equity partner(s) to restart and expand NNPC’s refineries and to explore opportunities in co-located petrochemical and gas-based industries,” he stated.
Findings showed that the MoU remains a non-binding framework and is still subject to regulatory approvals and further negotiations before final agreements are signed.
Sources said the implementation process would involve technical, financial, operational, commercial, and legal due diligence before any binding agreement is executed.
Analysts believe the shift toward equity participation reflects concerns within NNPC over the sustainability of previous refinery rehabilitation efforts.
The Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, said the inclusion of technically competent investors with equity stakes could improve efficiency and long-term sustainability.
“This is an innovative way of getting the assets to work in an efficient and sustainable way. The challenge we knew was that NNPC did not have the internal competence or capacity to run those refineries efficiently,” Isong said.
He added that equity participation would encourage the investors to ensure the facilities remain operational and profitable.
The Port Harcourt refinery rehabilitation project was previously awarded to Italian engineering firm Maire Tecnimont, while rehabilitation efforts have also been ongoing at the Warri refinery.
If completed, the proposed arrangement could significantly deepen Chinese participation in Nigeria’s downstream petroleum and gas industries.
