The Nigerian National Petroleum Company Limited (NNPC Ltd) is exploring a new partnership model that could grant Chinese investors a controlling 51 percent stake in the Port Harcourt and Warri refineries. This initiative aims to revive and reposition these facilities for sustainable profitability.
Memorandum of Understanding Signed in China
The proposal follows the signing of a Memorandum of Understanding (MoU) between NNPC Ltd and two Chinese firms—Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd. The agreement, described as a possible technical equity partnership, was signed on April 30, 2026, in Jiaxing City, China. The signatories included NNPC Group Chief Executive Officer Bayo Ojulari, Sanjiang Chemical Chairman Guan Jianzhong, and Xinganchen Chairman Bill Bi.
Structure Similar to NLNG Model
Sources familiar with the arrangement revealed that the proposed deal extends beyond a standard refinery rehabilitation contract and may involve long-term equity ownership by the Chinese firms. The structure is reportedly modeled after Nigeria LNG Limited, where foreign investors hold majority equity, participate in governance, and share operational responsibilities over the long term.
Under the proposed framework, the Chinese companies would assist in completing ongoing rehabilitation work at the Port Harcourt and Warri refineries. They would also handle operations and maintenance services to achieve sustainable performance standards. Additionally, the collaboration aims to increase refining capacity, improve profitability, and upgrade fuel production to meet cleaner and more environmentally friendly standards.
Petrochemical and Gas Projects Included
Beyond refinery rehabilitation, the parties are exploring investments in petrochemical and gas-based industrial projects around the refinery locations. An NNPC official stated that the project scope includes capacity expansion, yield optimization, petrochemical integration, compliance with cleaner fuel standards, and the development of gas-based industrial hubs in Nigeria.
The official commented: “The scope includes capacity expansion, yield optimisation, petrochemical integration, and compliance with clean fuel standards and exploration of gas-based industrial projects in Nigeria.”
Ojulari Highlights Breakthrough
Speaking after the signing ceremony, Ojulari described the agreement as a major breakthrough following over six months of negotiations. He emphasized that all parties recognized the long-term commercial opportunities tied to the refineries and the need for strong technical and financial partnerships to ensure project success. Ojulari added that the MoU marks an important step toward identifying technical equity partners capable of restarting, expanding, and commercially transforming Nigeria’s refining assets.
The Port Harcourt refinery rehabilitation project was initially awarded to Italian engineering company Maire Tecnimont, while separate rehabilitation work has been ongoing at the Warri refinery. If completed, the proposed arrangement could significantly expand Chinese involvement in Nigeria’s downstream oil, gas, and petrochemical sectors.
Civil society groups have called for Ojulari's resignation over concerns regarding refinery rehabilitation spending and the new MoU with Chinese firms.
Clarivo Oil and Gas Plans New Refinery
In related news, Clarivo Oil and Gas Ltd announced plans to construct a world-class oil refinery in Calabar, Cross River State. CEO Obidike Chukwuebuka stated that the facility will be developed in multiple phases and feature state-of-the-art technologies to produce high-quality petroleum products. The company expects the refinery to come online within about five years, subject to regulatory approvals and successful completion of project phases.
