The Nigerian National Petroleum Company Limited has entered into a new agreement with two Chinese companies to help move forward the long-delayed repair and restart of the country’s refineries. The deal also opens the door for possible technical equity partnerships.
The agreement takes the form of a Memorandum of Understanding with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd. NNPC described it as an important step in its efforts to reform the refinery sector.
Officials signed the MoU in Jiaxing City, China, on April 30, 2026. NNPC Group CEO Bashir Bayo Ojulari signed alongside Sanjiang Chairman Guan Jianzhong and Xingcheng Chairman Bill Bi.
Andy Odeh, NNPC’s Chief Corporate Communications Officer, said the agreement could lead to a technical equity partnership. This would focus on completing remaining work at the Port Harcourt and Warri refineries and improving their long-term performance.
According to the statement, the agreement allows NNPC to work with the Chinese firms through a possible technical equity structure to support both completion and operation of the refineries.
NNPC explained that the partnership is not limited to repairs. It also covers the full operation and maintenance of the facilities to improve performance over time.
The company added that the deal could include expansion plans to help the refineries produce cleaner fuels and more valuable products in line with current global standards.
Ojulari said the agreement followed over six months of technical and commercial discussions between NNPC and the Chinese companies.
He noted that all parties see opportunities to improve the long-term value and profitability of Nigeria’s refining assets and understand the level of collaboration required to achieve this.
He explained that the MoU marks a move away from contractor-led repairs toward a partnership model where risks and returns are shared.
Ojulari added that the agreement is part of efforts to identify technical partners who can help restart and expand the refineries while also exploring related opportunities in petrochemicals and gas-based industries.
This shift to a technical equity approach reflects a change from earlier repair programs, many of which did not deliver lasting results despite significant spending.
Under this model, the Chinese companies are expected to contribute technical expertise, operational management, and funding, with returns linked to how well the refineries perform.
NNPC said the partnership could also support the development of gas-based industrial hubs around the refinery sites.
These hubs could help turn the Port Harcourt and Warri facilities into broader energy and petrochemical centers.
The company believes such developments could create more value from Nigeria’s gas resources while supporting local industry and exports.
NNPC noted that the MoU is only an initial agreement. Any final deal will depend on regulatory approvals and further negotiations.
The agreement also reflects Ojulari’s earlier call at the Nigeria International Energy Summit 2026 for international partners to take equity stakes in Nigeria’s refineries.
At the summit, he said the country’s refinery problems go beyond funding and require strong technical and operational expertise.
He explained that the new approach focuses on bringing in partners who are directly involved in operations and accountable for performance.
Ojulari said this model would improve efficiency because partners would only earn returns when the refineries operate successfully.
He stressed that past spending on repairs without lasting output should not continue and that future partnerships must deliver clear results and technology transfer.
He also pointed out the need to link refining with petrochemical and gas-based industries, as modern refineries now function as integrated energy centers.
According to him, combining refining with petrochemicals, fertilizers, and gas processing is key to creating more economic value.
Nigeria’s refineries in Port Harcourt, Warri, and Kaduna have struggled for years with low output, shutdowns, and unsuccessful repair efforts, leading to continued reliance on fuel imports.
Despite several maintenance projects, the facilities have not operated efficiently, raising concerns about cost and effectiveness.
The current administration has made refinery revival a priority as part of efforts to improve energy security, while also supporting private investments like the Dangote Refinery.
NNPC’s push for technical partners comes as the country seeks to reduce fuel imports, stabilize supply, and ease pressure on foreign exchange.
With this agreement, NNPC is adopting a partnership model that links investment returns to performance in an effort to improve the refinery sector.
source: punchng.com
African Energy Council