SUNTV Global Channel | Energy Desk | May 4, 2026
The Nigerian National Petroleum Company (NNPC) Limited has signed a Memorandum of Understanding (MoU) with two Chinese firms aimed at restarting and expanding the Warri and Port Harcourt refineries, following years of costly and largely unsuccessful rehabilitation efforts.
The agreement, signed on Thursday, April 30, 2026, involves Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd.
According to NNPC, the partnership is designed to establish a potential technical equity collaboration that would support the completion, operation, and long-term sustainability of the two refineries, which are considered critical to Nigeria’s domestic fuel production capacity.
The company said the framework will focus on completing outstanding rehabilitation work, improving operational efficiency, and upgrading both facilities to meet modern refining and cleaner fuel standards.
It also noted that the partnership could extend into petrochemical expansion and the development of gas-based industrial hubs located around the refinery complexes.
NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, described the agreement as a major milestone after several months of negotiations between Nigerian and Chinese technical teams.
He said the collaboration reflects a shared interest in unlocking the long-term profitability of Nigeria’s refining assets and addressing persistent inefficiencies in the sector.
Ojulari added that the MoU marks an initial step toward identifying technical equity partners, stressing that any binding agreements would still be subject to regulatory approvals and further negotiations.
While the announcement has been positioned as a strategic advancement, it also comes against the backdrop of long-standing public concerns over repeated refinery rehabilitation projects that have consumed billions of naira without delivering consistent production results.
The NNPC clarified that the current agreement is not yet a final investment deal, but a framework for continued discussions in good faith toward eventual execution.
Nigeria continues to rely heavily on imported petroleum products despite owning multiple state-owned refineries, making refinery rehabilitation a central issue in the country’s energy and economic planning.
