By Chinedu Okonkwo
The Nigerian National Petroleum Company Limited (NNPC Ltd.) is exploring an equity partnership that could see Chinese investors acquire a 51 per cent stake in the Port Harcourt and Warri refineries, as part of efforts to rehabilitate and reposition the facilities for commercial viability.
The development follows the signing of a Memorandum of Understanding (MoU) between NNPC Ltd. and Chinese firms Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd. The agreement, described as a “potential technical equity partnership,” was signed in Jiaxing City, China on April 30, 2026.
Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, signed on behalf of the company, alongside Sanjiang Chairman Guan Jianzhong and Xinganchen Chairman Bill Bi.
NLNG-Style Partnership
Sources within NNPC revealed that the proposed framework is modeled after the NLNG equity structure, where investors hold majority stakes, participate in governance, and share operational responsibilities.
Under the arrangement, the Chinese partners would support the completion of outstanding rehabilitation work at the refineries, while also providing operations and maintenance services to ensure “best-in-class, sustainable performance.”
The plan includes expanding refinery capacity, improving profitability, and aligning fuel production with cleaner specifications.
Petrochemical and Gas Expansion
Beyond refining, the parties are considering investments in petrochemicals and gas-based industrial projects, with co-located industrial hubs envisioned around the refinery complexes.
“The scope includes capacity expansion, yield optimisation, petrochemical integration, and compliance with clean fuel standards,” an NNPC official said.
Strategic Milestone
Speaking after the signing, Ojulari described the MoU as a milestone in NNPC’s search for technical equity partners.
“All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria,” he said.
He added that the agreement sets the stage for deeper collaboration, though definitive contracts remain subject to regulatory approvals and due diligence.
Industry Reactions
Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Isong, welcomed the move, noting that equity participation would ensure efficiency and sustainability.
“This is an innovative way of getting the assets to work. The difference is that the partners are part-owners, so they have every incentive to ensure the refineries operate efficiently,” Isong explained.
Analysts say the shift towards equity partnerships reflects NNPC’s concerns over the sustainability of past rehabilitation contracts, which failed to deliver lasting results.
Background
The Port Harcourt refinery rehabilitation had previously been awarded to Italian firm Maire Tecnimont, while separate efforts were underway at the Warri refinery.
If finalised, the deal could deepen Chinese participation in Nigeria’s downstream petroleum and gas industries, marking a significant shift in the country’s energy sector strategy.