The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a Memorandum of Understanding (MoU) with two Chinese firms to restart, operate, and expand the Warri and Port Harcourt refineries.
The deal, signed on April 30 this year in Jiaxing City, China, is expected to pave the way for technical equity partnerships that will complete rehabilitation works and ensure sustainable operations.
In a statement on Monday, NNPC’s Chief Corporate Communications Officer Andy Odey confirmed the MoU was signed with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd.
The agreement was executed by NNPC’s Group Chief Executive Officer Bashir Bayo Ojulari, alongside Sanjiang Chairman Guan Jianzhong and Xingcheng Chairman Bill Bi.
Ojulari described the deal as a milestone after months of negotiations. “All parties recognise mutually beneficial opportunities for the development and long-term sustainability of NNPC’s refining assets,” he said.
He added, “The MoU represents a key step toward securing technical partners for the rehabilitation and expansion of the country’s refineries, while also unlocking opportunities in petrochemicals and gas-based industries.”
Rehabilitation And Expansion Plans
Under the arrangement, the Chinese partners will support completion of outstanding rehabilitation work at both refineries and participate in their operation and maintenance.
The partnership will also explore expansion to meet cleaner fuel standards, improve profitability, and boost petrochemical production capacity. Plans include developing gas-based industrial hubs around the facilities.
The rehabilitation of the Port Harcourt Refining Company was approved in 2021 at an estimated cost of $1.5 billion, with contracts awarded to Italy’s Saipem and partners to restore its 210,000 barrels per day capacity.
Similarly, the Warri Refining and Petrochemical Company is undergoing rehabilitation under a contract valued at about $897 million, aimed at reviving its 125,000 barrels per day capacity.
Both projects are central to NNPC’s strategy to reduce Nigeria’s reliance on imported petroleum products.
The Port Harcourt refinery briefly resumed operations in late 2024 but was later shut down due to operational and financial challenges.
Ojulari clarified that the MoU is non-binding and subject to regulatory approvals and further negotiations.
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