The Nigerian National Petroleum Company (NNPC) Limited has signed a Memorandum of Understanding (MoU) with two Chinese firms to support the completion, operation, and potential expansion of the Port Harcourt and Warri refineries.
The agreement, aimed at establishing a technical equity partnership, was formalized in Jiaxing City, China, on Thursday, April 30.
According to a statement released on Monday by NNPC’s Chief Corporate Communications Officer, Andy Odeh, the collaboration involves Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd.
The framework focuses on finishing outstanding rehabilitation work and ensuring efficient, sustainable maintenance to achieve best-in-class performance at both facilities.
The agreement was signed by NNPC Group Chief Executive Officer Bashir Ojulari, alongside Guan Jianzhong, Chairman of Sanjiang Chemical Company, and Bill Bi, Chairman of Xinganchen Industrial Park Operation and Management Co., Ltd.
Nigeria’s state-run refining network consists of four plants with a combined installed capacity of 445,000 barrels per day (bpd). This includes the Port Harcourt Refining Company, which operates two plants with a 210,000 bpd capacity, the Warri Refining and Petrochemical Company at 125,000 bpd, and the Kaduna Refining and Petrochemical Company at 110,000 bpd.
Despite heavy investment over the years, these refineries have consistently struggled with operational constraints.
The Warri Refinery briefly reopened in December 2024 but was forced to shut down just a month later due to safety concerns. Similarly, the Port Harcourt Refinery underwent an outage in May of last year to undergo scheduled maintenance. In October, the NNPC initiated a comprehensive review of its refining assets to align them with the requirements of the Petroleum Industry Act, positioning the company as the nation’s fuel supplier of last resort.
The NNPC noted that these planned upgrades would help the refineries meet cleaner fuel standards and increase overall profitability. Beyond refining, the partnership intends to explore expanding petrochemical production and developing gas-based industrial hubs within the existing refinery complexes.
Speaking after the ceremony, Mr. Ojulari described the MoU as a major milestone resulting from six months of technical and management engagements.
He emphasized that all parties recognize the mutually beneficial opportunities for long-term sustainability and profitability of Nigeria’s refining assets.
While the MoU reflects a commitment to move forward in good faith, the NNPC clarified that any final agreements remain subject to customary regulatory approvals and the conclusion of definitive arrangements.
This partnership marks a significant step in Nigeria’s ongoing effort to secure strategic investors, reduce its dependence on imported fuel, and maximize the commercial value of its downstream assets.
