The Nigerian National Petroleum Company Limited (NNPC Ltd) has entered into a new agreement with Chinese partners aimed at accelerating the rehabilitation and long-term transformation of Nigeria’s major refineries.
The deal, structured as a Memorandum of Understanding (MoU), was signed with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, marking a significant step in efforts to restore refining capacity and reduce Nigeria’s dependence on fuel imports.
The agreement was executed on April 30, 2026, in Jiaxing City, China, with NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, signing on behalf of the national oil firm alongside top executives of the partner companies.
According to a statement issued by NNPC spokesperson Andy Odeh, the partnership is expected to pave the way for a Technical Equity Partnership model focused on completing ongoing rehabilitation works at the Port Harcourt and Warri refineries, while ensuring sustainable and efficient operations.
The national oil company said the collaboration would go beyond routine repairs, extending into full-scale operation, maintenance, and potential expansion of the facilities to meet modern energy standards. Plans under the agreement also include upgrading the refineries to produce cleaner fuels and higher-value petroleum products.
Ojulari described the development as a major milestone following months of negotiations, noting that the partnership reflects a shift from traditional contractor-driven projects to a model based on shared risks and performance outcomes.
He explained that the new framework would align investor returns with refinery performance, ensuring accountability and long-term viability. The approach is also expected to attract technical expertise, operational discipline, and investment capital from experienced global partners.
In addition to refinery upgrades, the collaboration will explore the development of integrated industrial hubs around the facilities, including petrochemical and gas-based projects. These hubs are expected to maximise Nigeria’s natural gas resources while supporting industrial growth and export potential.
NNPC noted that while the MoU signals intent, final agreements will depend on regulatory approvals and the outcome of detailed commercial negotiations.
The move aligns with the company’s broader strategy to reposition Nigeria’s refining sector, which has struggled for decades with underperformance, repeated shutdowns, and costly but ineffective maintenance efforts.
Nigeria’s refineries in Port Harcourt, Warri, and Kaduna have operated far below capacity over the years, forcing the country to rely heavily on imported petroleum products despite being a major crude oil producer.
The current administration has prioritised refinery rehabilitation as part of its energy security agenda, alongside support for private-sector investments such as the Dangote Refinery.
Industry analysts say the adoption of a technical equity partnership model could mark a turning point, as it ties investor returns directly to operational efficiency—potentially addressing longstanding challenges of mismanagement and poor output in the sector.
With the latest agreement, NNPC is seeking to unlock the full potential of Nigeria’s refining assets while strengthening domestic fuel supply and reducing pressure on foreign exchange.
