Olamilekan Abayomi
NNPC Ltd signed a Memorandum of Understanding with two Chinese firms in Jiaxing City on Thursday, April 30, 2026, to restart and expand the Warri and Port Harcourt refineries. The agreement was executed by GCEO Engr. Bashir Bayo Ojulari for NNPC, Guan Jianzhong for Sanjiang Chemical Company Limited, and Bill Bi for Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd. The MoU sets the framework for what NNPC calls a Technical Equity Partnership designed to return the long-idled plants to reliable operations.
The partnership aims to complete all outstanding rehabilitation work at both the Port Harcourt and Warri refineries and then take over their operation and maintenance. NNPC said the goal is to achieve best-in-class, sustainable performance at the facilities and reduce Nigeria’s dependence on imported refined products. The Chinese companies bring experience from operating some of China’s largest petrochemical complexes, which NNPC has cited as critical to avoiding the failures of previous contractor-led turnaround maintenance attempts.
Beyond restoring basic refining capacity, the MoU also covers expansion and upgrades to enable the plants to produce cleaner and more profitable products. The parties agreed to pursue growth in petrochemical capacity and to develop co-located, gas-based industrial hubs that can leverage downstream gas opportunities around the refineries. NNPC believes this integrated approach will improve long-term margins and make the assets self-financing once operational.
Ojulari described the signing as a significant milestone that followed more than six months of detailed technical and management engagement between the parties. He emphasized that all sides recognize mutually beneficial opportunities for the development and long-term sustainable profitability of Nigeria’s refining assets. The GCEO has repeatedly said NNPC is not selling the refineries but is willing to relinquish portions of equity to partners who have technical expertise and are prepared to invest for the long term.
The move comes after years of underperformance across NNPC’s four refineries in Port Harcourt, Warri, and Kaduna, which have a combined nameplate capacity of 445,000 barrels per day. Despite more than $25 billion spent on rehabilitation over two decades, the plants have operated far below capacity and at huge losses, forcing Africa’s largest crude producer to rely heavily on fuel imports. An internal review after Ojulari assumed office in April 2025 showed high operating costs, heavy contractor spending, and very low processing volumes.
NNPC halted operations at the plants to allow time to assess options for restoring them, a decision made easier by the launch of Dangote Refinery, which reached its full 650,000 bpd nameplate capacity in February 2026 and offered breathing space for domestic fuel supply. The company has been in advanced talks with several interested parties but said the Chinese firm was among the first to move to site inspections. Ojulari confirmed in February that a potential investor was going to the refinery to inspect after a meeting.
The new strategy prioritizes industrial partnerships based on operational performance rather than engineering contracts alone. Three elements are considered essential to restarting the refineries: financing, a competent engineering procurement and construction contractor, and world-class operational capacity. If concluded, the partnership with Sanjiang and Xinganchen is expected to cut fuel import bills, lower operating costs, and restore meaningful domestic refining capacity for Nigeria.
Final agreements under the MoU remain subject to necessary approvals. NNPC’s board has approved the overall approach of bringing in refinery operators with proven expertise to take equity stakes and run the facilities. The state oil company says the focus is on ensuring the plants meet international standards and remain profitable without recurring government bailouts.
