The Nigerian National Petroleum Company Limited (NNPC Ltd) has entered into a new agreement with two Chinese firms to help bring the Warri and Port Harcourt refineries back to full operation and support their future expansion.
The understanding was reached with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd through a Memorandum of Understanding signed in Jiaxing, China, on April 30.
According to NNPC, the arrangement is expected to lead to a Technical Equity Partnership that will assist in completing ongoing rehabilitation works and ensure the efficient running of both refineries once they are fully restored.
The document was signed by Bashir Bayo Ojulari on behalf of NNPC, alongside the leadership of the two Chinese companies.
Under the proposed plan, the Chinese partners will help finish outstanding repairs, participate in operations and maintenance, and explore options for upgrading the facilities to produce cleaner fuels while improving their commercial performance. The plan also includes developing gas-driven industrial clusters around the refinery locations and expanding petrochemical capacity.
Ojulari described the agreement as the outcome of months of engagement, noting that all parties see long-term value in strengthening Nigeria’s refining assets. He, however, clarified that the MoU is not legally binding and remains subject to regulatory approvals and further negotiations.
The Port Harcourt refinery rehabilitation was earlier approved in 2021 at an estimated cost of $1.5 billion, with engineering firm Saipem and other partners engaged to restore its 210,000 barrels-per-day capacity.
Similarly, the Warri refinery is undergoing rehabilitation under a project valued at about $897 million to revive its 125,000 barrels-per-day output and reintroduce petrochemical production.
Both projects are part of NNPC’s effort to cut Nigeria’s dependence on imported petroleum products and improve local refining capability. The Port Harcourt facility briefly returned to service in late 2024 after years of shutdown but was later taken offline again due to operational and financial setbacks.
