The Nigerian National Petroleum Company Limited (NNPCL) has signed a Memorandum of Understanding (MoU) with two Chinese firms for the completion, rehabilitation, and operation of the Port Harcourt and Warri refineries, in a move aimed at reshaping Nigeria’s downstream oil sector.
The agreement was reached with Sanjiang Chemical Company Limited and Xingcheng Fuzhou Industrial Park Operation and Management Co. Ltd under a proposed Technical Equity Partnership (TEP) arrangement.
The deal was concluded in Jiaxing City, China, by NNPC Group Chief Executive Officer Bashir Ojulari alongside representatives of both companies.
According to NNPCL, the partnership will cover outstanding rehabilitation works at the Port Harcourt and Warri refineries, as well as their operation and maintenance to ensure sustainable performance.
It also includes potential expansion of petrochemical production capacity and the development of gas-based industrial hubs linked to the facilities.
The company said the arrangement is expected to improve refining efficiency, boost profitability, and support downstream industrial growth.
Ojulari described the agreement as a major milestone following over six months of technical engagement, noting that it reflects a shared commitment to long-term value creation from Nigeria’s refining assets.
The development comes against the backdrop of previous concerns raised about refinery operations, including high operating costs and low output levels, as well as reports that the facilities were running far below capacity and recording significant monthly losses.
Despite those challenges, the new partnership signals a renewed push toward reviving domestic refining capacity and reducing dependence on imported petroleum products.
The agreement has received support from industry stakeholders, including the Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Isong, who described it as a positive step toward strengthening local refining and job creation.
He noted that private-sector-driven management could improve efficiency and position Nigeria as a regional refining hub.
Similarly, President of the Nigeria Labour Congress (NLC), Joe Ajaero, welcomed the development, describing it as aligned with long-standing calls for refinery rehabilitation.
The NNPCL said further details on the technical and financial structure of the partnership will be released as discussions progress toward full implementation, marking one of the most significant recent efforts to restore Nigeria’s domestic refining capacity.
