Nigeria’s state oil company, NNPC Ltd, has entered into a Memorandum of Understanding (MoU) with two Chinese firms to facilitate the completion, restart, and expansion of the Warri and Port Harcourt refineries through a potential Technical Equity Partnership. The agreement was signed on Thursday, April 30, 2026, in Jiaxing City, China, by NNPC Group CEO, Engr. Bashir Bayo Ojulari, Sanjiang Chemical Company Limited Chairman Guan Jianzhong, and Bill Bi, Chairman of Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd.
Under the proposed framework, the Chinese partners would support the finishing of outstanding rehabilitation work at both refineries, alongside their operation and maintenance to achieve high-performance, sustainable standards. The collaboration also envisions upgrades to produce cleaner fuels and more profitable refined products, as well as the expansion of petrochemical capacities.
Additionally, the parties plan to explore the development of co-located gas-based industrial hubs to harness downstream opportunities from gas resources. Engr. Bashir Bayo Ojulari described the MoU as a significant milestone, coming after more than six months of intensive technical and management engagements between NNPC and the Chinese partners.
“All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria, and the collective weight required for success,” Ojulari said. He added that the agreement represents an important step toward securing technical equity partners to restart and expand the refineries while exploring opportunities in petrochemicals and gas-based industries.
The MoU signals the parties’ intention to continue discussions in good faith. However, it remains subject to further negotiations and customary regulatory approvals before any binding agreements are reached.
Nigeria’s Port Harcourt and Warri refineries, with combined installed capacities of 335,000 barrels per day (Port Harcourt: 210,000 bpd; Warri: 125,000 bpd), were commissioned in 1965/1989 and 1978 respectively. Once central to the country’s refining ambitions, both facilities have suffered prolonged low utilisation, frequent shutdowns, and underperformance for over a decade despite multiple turnaround maintenance programmes and substantial rehabilitation investments, including a $1.5 billion project for Port Harcourt. Brief restarts in late 2024 and early 2025 proved short-lived due to technical and commercial challenges, leaving them largely idle as of early 2026.
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