The Nigerian National Petroleum Company Limited(NNPC) has entered into a fresh agreement with two Chinese firms in a renewed push to fast-track the rehabilitation and commercial restart of Nigeria’s refineries, while also paving the way for technical equity partnerships.
The deal, structured as a Memorandum of Understanding (MoU), was signed with Sanjiang Chemical Company Limitedand Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd. It marks what the national oil company described as a “critical milestone” in its refinery transformation efforts.
The agreement was executed in Jiaxing City on April 30, 2026, by the Group Chief Executive Officer of NNPC Ltd, Bashir Bayo Ojulari, alongside Guan Jianzhong of Sanjiang Chemical Company and Bill Bi of Xingcheng Industrial Park.
According to a statement by NNPC’s Chief Corporate Communications Officer, Andy Odeh, the MoU is designed to open the door for a Technical Equity Partnership that will help complete ongoing work at the Port Harcourt and Warri refineries and ensure their long-term efficiency.
“The NNPC Ltd has signed a Memorandum of Understanding (MoU) with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, for collaboration through a potential Technical Equity Partnership in support of the completion and operation of the Port Harcourt and Warri Refineries.”
The company explained that the partnership will extend beyond rehabilitation to include full-scale operation and maintenance, with a focus on achieving “best-in-class, sustainable performance.” It will also explore expansion opportunities aimed at producing cleaner fuels and higher-value petroleum products in line with global standards.
Speaking after the signing, Ojulari described the agreement as the product of over six months of technical and commercial engagements.
He said, “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 added that the MoU signals a shift away from contractor-led rehabilitation toward a performance-driven partnership model based on shared risks and returns.
“This is an important step on the journey towards identifying potential technical equity partner or partners to restart and expand NNPC’s refineries, and to explore opportunities in co-located petrochemicals and gas-based industries,” he said.
The new model represents a departure from previous turnaround maintenance efforts that failed to deliver lasting results despite heavy investments. Under the proposed framework, the Chinese partners are expected to contribute engineering expertise, operational discipline, and investment capacity, with returns tied directly to refinery performance.
NNPC also noted that the collaboration could lead to the development of gas-based industrial hubs around the refinery complexes, transforming them into integrated energy and petrochemical centres capable of supporting domestic manufacturing and exports.
While the MoU reflects a shared intention to proceed, the company clarified that binding agreements will depend on regulatory approvals and the outcome of detailed commercial negotiations.
The deal aligns with Ojulari’s earlier call at the Nigeria International Energy Summit 2026 for global partners to take equity positions in Nigeria’s refining assets.
“What we are doing differently is moving away from just funding projects to bringing in partners who have skin in the game, partners who will operate, optimise, and guarantee performance,” he said.
“The days of spending billions on rehabilitation without sustainable output are behind us. We are now focused on partnerships that deliver value, technology transfer, and operational excellence.”
He further emphasised the need to integrate refining with petrochemicals and gas-based industries.
“Refineries must evolve into integrated industrial platforms. That is where the future lies, petrochemicals, fertilizers, gas monetisation. That is how you create real economic value,” he said.
Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna have faced decades of underperformance, frequent shutdowns, and unsuccessful rehabilitation efforts, forcing the country to rely heavily on imported petroleum products.
With this latest agreement, NNPC appears to be adopting a new strategy focused on performance-based partnerships to unlock the long-standing potential of Nigeria’s refining sector, reduce fuel import dependence, and strengthen energy security.
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