The Nigerian National Petroleum Company (NNPC) Limited has signed a Memorandum of Understanding with two Chinese firms as part of renewed efforts to restart and expand Nigeria’s state-owned refineries in Warri and Port Harcourt.
The agreement, disclosed in a statement dated 3 May 2026, was executed in Jiaxing City, China, on 30 April. It was signed by NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, alongside Guan Jianzhong of Sanjiang Chemical Company and Bill Bi of Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd.
According to NNPC, the collaboration will focus on completing ongoing rehabilitation work at the refineries, overseeing operations and maintenance, improving efficiency and long-term sustainability, and enhancing product quality and profitability.
“The potential collaboration also contemplates expanding the refineries’ petrochemical capacities and harnessing gas and downstream opportunities,” the company stated.
Ojulari described the MoU as a critical milestone, noting that it reflects increasing alignment between NNPC and its partners on the future of Nigeria’s refining infrastructure.
The latest move comes amid continued efforts to revive Nigeria’s struggling refinery system. Operations at the Warri and Port Harcourt refineries have remained largely inactive since 24 May 2025, when they were shut down for maintenance initially expected to last 30 days. Subsequent technical and commercial reviews, however, revealed deeper structural and financial challenges.
In February 2026, Ojulari disclosed that the refineries were operating at significant losses, prompting extended shutdowns to prevent further erosion of value.
The new agreement builds on earlier discussions with Chinese partners and signals a shift towards securing technical and equity partners capable of delivering a sustainable turnaround.
NNPC’s strategy now goes beyond restarting refining operations. By integrating petrochemical production and gas-based industries into refinery sites, the company aims to diversify revenue streams, improve asset utilisation and align with global trends in integrated energy infrastructure.
Despite growing calls for privatisation, NNPC has maintained its stance against selling the refineries, reiterating its commitment to rehabilitation and continued ownership. Previous efforts, including the 1.5 billion dollar rehabilitation of the Port Harcourt refinery, have faced scrutiny after failing to achieve sustained operations.
Recent concerns, including reports about the sale of scrap materials, have also been denied by the company.
The agreement comes as NNPC shows signs of financial recovery, reporting a profit after tax of 276 billion naira for March 2026, reflecting improved performance as it pursues long-term infrastructure investments.
However, uncertainties remain over whether the partnership will lead to fully operational refineries, the timeline for rehabilitation and expansion, and the ability to sustain profitability in a volatile energy market.
The deal represents another attempt to address a long-standing challenge in Nigeria’s energy sector: restoring domestic refining capacity. If successful, it could reduce reliance on fuel imports, strengthen downstream operations and unlock additional value through petrochemicals and gas integration.
Execution, however, will be critical, with the coming months likely to determine whether the initiative delivers meaningful progress or adds to a history of stalled refinery projects.
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