Partnership targets refinery upgrade, petrochemical expansion, and gas-based industrial hubs
The Nigerian National Petroleum Company Limited has signed a Memorandum of Understanding (MoU) with two Chinese firms to rehabilitate and operate Nigeria’s Port Harcourt and Warri refineries.
The agreement involves Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd.
Deal Signed in China
NNPCL confirmed that the MoU was signed on April 30, 2026, in Jiaxing City.
Group Chief Executive Officer Bashir Bayo Ojulari signed the agreement alongside the chairmen of the Chinese firms.
The company said the partnership aims to complete ongoing work, improve operations, and upgrade refinery infrastructure.
Focus on Performance and Expansion
NNPCL stated that the collaboration will focus on achieving sustainable and efficient refinery operations.
The plan includes upgrading facilities to meet cleaner fuel standards and improve profitability.
It also aims to expand petrochemical production and develop gas-based industrial hubs around the refineries.
Ojulari Describes Milestone
Ojulari described the agreement as a major step forward after months of discussions.
He said all parties identified opportunities to improve refinery performance and ensure long-term profitability.
He added that the MoU marks progress toward securing technical equity partners for Nigeria’s refining sector.
Industry Stakeholders Raise Concerns
The deal has sparked debate among industry stakeholders.
Some experts questioned the choice of Chinese firms for refinery rehabilitation.
They noted that few African refinery projects have relied on Chinese technical leadership.
Crude Oil Refinery Owners Association of Nigeria spokesperson Eche Idoko expressed concern over the decision.
He said local expertise could have played a stronger role in the project.
Idoko also warned about possible capital flight and questioned the technical experience of the firms in large-scale refinery rehabilitation.
Refineries Struggle With Long Downtime
Nigeria’s state-owned refineries have faced years of operational challenges.
The Warri refinery has a capacity of 125,000 barrels per day. The Port Harcourt refinery has a capacity of 210,000 barrels per day.
Both facilities have suffered from vandalism, outdated equipment, and poor maintenance.
Despite over $3 billion spent on rehabilitation since 2021, the refineries remain largely inactive.
Chinese Firms’ Track Record
Sanjiang Chemical focuses on petrochemical production, including polypropylene and ethylene processing.
However, it has limited documented experience in refinery rehabilitation in Africa.
Chinese firms have previously built refineries in countries like Sudan and Chad.
They have also contributed engineering expertise to projects such as the Dangote Refinery.
Next Steps
NNPCL said the MoU reflects a shared intention to continue discussions.
Final agreements will depend on regulatory approvals and further negotiations.
