Nigeria’s state oil company, the Nigerian National Petroleum Company (NNPC) Limited, is considering handing Chinese investors a majority 51 per cent equity stake in the Port Harcourt and Warri refineries — in a deal that could fundamentally reshape Nigeria’s downstream petroleum sector and mark one of the most significant foreign investments in the country’s refining industry in decades.
Details of the proposed arrangement emerged after NNPC signed a Memorandum of Understanding with Chinese firms Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd for what the national oil company described as a ‘potential technical equity partnership.’ The MoU was signed in Jiaxing City, China, on April 30, 2026, by NNPC Group Chief Executive Officer Bayo Ojulari, Sanjiang Chemical Chairman Guan Jianzhong, and Xinganchen Chairman Bill Bi.
Sources within NNPC told reporters that the proposed framework is structured around an ‘NLNG-type model’ — similar to the Nigeria LNG joint venture structure, where investors hold 51 per cent equity, participate in governance, and share operational responsibilities over the long term. Under the arrangement, the Chinese firms would support the completion of outstanding rehabilitation work at both refineries, take over operations and maintenance services, and help achieve what NNPC described as ‘best-in-class, sustainable performance.’
The agreement also envisions expanding refinery capacity, improving profitability, and raising fuel production to cleaner specifications. Crucially, the parties are exploring expansion into petrochemicals and gas-based industrial projects through the development of co-located industrial hubs around both refinery complexes, covering capacity expansion, yield optimisation, petrochemical integration, and compliance with clean fuel standards.
Ojulari described the agreement as a major milestone after more than six months of engagement, saying all parties recognise mutually beneficial opportunities for the long-term sustainable profitability of NNPC’s refining assets. He stressed that the MoU marks an important step in identifying technical equity partners capable of restarting and expanding the refineries. The agreement remains non-binding and subject to full technical, operational, financial, commercial, and legal due diligence before any definitive contracts are executed.
Industry analysts said the shift toward an equity partnership structure signals growing concern within NNPC over the sustainability of conventional rehabilitation contractor arrangements. Clement Isong, Executive Secretary of the Major Energies Marketers Association of Nigeria, described the model as innovative and said the key difference is that the Chinese partners would be taking equity as part-owners, creating a direct financial incentive for the facilities to operate efficiently and profitably. The Port Harcourt refinery had previously been under a rehabilitation contract awarded to Italian engineering firm Maire Tecnimont, while separate rehabilitation efforts had also been under way at the Warri refinery.
Source: punchng.com