Port Harcourt, Warri Refineries May Go Under Chinese-Led Management in New NNPC Deal
- NNPC is discussing a partnership that could give Chinese investors a 51 per cent stake in the Port Harcourt and Warri refineries
- The deal involves two Chinese firms to help complete refinery rehabilitation and improve operations
- The proposed agreement also includes plans for refinery expansion, petrochemical projects, and gas-based industrial hubs in Nigeria
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Nigerian National Petroleum Company Limited (NNPC Ltd) is considering a new partnership model that could give Chinese investors a controlling 51% stake in the Port Harcourt and Warri refineries as part of efforts to revive and reposition the facilities for long-term profitability.
The proposal follows the signing of a Memorandum of Understanding (MoU) between NNPC Ltd and two Chinese companies — Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd. — for what NNPC described as a possible technical equity partnership.
Source: UGC
The agreement was signed on April 30, 2026, in Jiaxing City, China, by NNPC Group Chief Executive Officer Bayo Ojulari, Sanjiang Chemical Chairman Guan Jianzhong, and Xinganchen Chairman Bill Bi.
Partnership model mirrors NLNG structure
According to Punch, sources familiar with the arrangement said the proposed deal goes beyond a normal refinery rehabilitation contract and could involve long-term equity ownership by the Chinese firms.
According to insiders, the structure is being designed around a model similar to that of Nigeria LNG Limited, where foreign investors hold majority equity, take part in governance, and share operational responsibilities over the long term.
Under the proposed framework, the Chinese companies would help complete ongoing rehabilitation work at the Port Harcourt and Warri refineries while also handling operations and maintenance services aimed at achieving sustainable performance standards.
The planned collaboration is also expected to increase refining capacity, improve profitability, and upgrade fuel production to cleaner and more environmentally friendly standards.
Petrochemical, gas projects also in focus
Beyond refinery rehabilitation, the parties are reportedly exploring investments in petrochemical and gas-based industrial projects around the refinery locations.
An NNPC official familiar with the discussions said the project scope includes refinery expansion, production optimisation, petrochemical integration, compliance with cleaner fuel standards, and the development of gas-based industrial hubs.
The official said:
“The scope includes capacity expansion, yield optimisation, petrochemical integration, and compliance with clean fuel standards and exploration of gas-based industrial projects in Nigeria.”
Speaking after the signing ceremony, Ojulari described the agreement as a major breakthrough following over six months of negotiations between both sides.
He said all parties recognised the long-term commercial opportunities tied to the refineries and the need for strong technical and financial partnerships to make the projects successful.
Ojulari added that the MoU marks an important step towards identifying technical equity partners capable of restarting, expanding, and commercially transforming Nigeria’s refining assets.
Source: UGC
The Port Harcourt refinery rehabilitation project had earlier been awarded to Italian engineering company Maire Tecnimont, while separate rehabilitation work has also been ongoing at the Warri refinery.
If completed, the proposed arrangement could significantly expand Chinese involvement in Nigeria’s downstream oil, gas, and petrochemical sectors.
Recall that civil society groups have called for Ojulari's resignation over growing concerns surrounding refinery rehabilitation spending and a fresh MoU signed with Chinese firms.
Nigerian company to build ‘world-class’ refinery
Meanwhile, Legit.ng earlier reported that Clarivo Oil and Gas Ltd announced plans to construct a world‑class oil refinery in Calabar, Cross River state.
Obidike Chukwuebuka, the company's CEO, said the proposed facility will be developed in multiple phases and feature state‑of‑the‑art technologies designed to produce high‑quality petroleum products.
The company projects that the refinery will come online within about five years, subject to regulatory approvals and the successful completion of project phases.
Source: Legit.ng
