NNPC Signs MoU With Chinese Firms for Refinery Equity Partnership
The Nigerian National Petroleum Company Limited (NNPC) is considering an NLNG-style equity partnership that could hand Chinese investors a majority stake of about 51 per cent in the Port Harcourt and Warri refineries, as part of a broader plan to rehabilitate and commercially reposition the facilities.
Details emerged after NNPC signed a Memorandum of Understanding (MoU) with Chinese firms Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd.
The MoU, signed in Jiaxing City, China, on April 30, 2026, by NNPC Group Chief Executive Officer Bayo Ojulari and the chairmen of the two firms, outlines a potential technical equity partnership.
Sources told The Punch that the proposed framework goes beyond conventional rehabilitation contracts and may involve long-term equity participation, joint governance, and operational involvement similar to the Nigeria LNG model.
Under the collaboration, the Chinese firms would support completion of outstanding work at the refineries, provide operations and maintenance services, and expand capacity to meet cleaner fuel standards.
Ojulari described the agreement as a milestone after six months of engagement. “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,” he said.
The MoU also covers potential expansion into petrochemicals and gas-based industrial projects through co-located hubs around the refinery complexes. Analysts say the equity model signals NNPC’s concern over the sustainability of past rehabilitation arrangements.
Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, welcomed the move.
“This is an innovative way of getting the assets to work in an efficient and sustainable way. The key difference is that the third party is taking equity as part owner, so they would want the refinery to work to get returns on their investment,” he explained.
The agreement remains non-binding, with implementation subject to technical, financial, commercial, and legal due diligence, as well as regulatory approvals.
