The Nigerian National Petroleum Company Limited (NNPC Ltd) has entered a new agreement with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, to advance the rehabilitation and operational restart of Nigeria’s refineries. This Memorandum of Understanding (MoU), signed in Jiaxing City, China, by NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, and the leaders of the two Chinese firms, is seen as a significant step in the refinery transformation process, as it supports technical equity partnerships.
According to NNPC’s Chief Corporate Communications Officer, Andy Odeh, the agreement aims to establish a Technical Equity Partnership to conclude necessary work at the Port Harcourt and Warri refineries, ensuring their long-term efficacy. The collaboration will not only focus on rehabilitation but also cover full operational and maintenance aspects for optimized performance. The initiative seeks to expand projects related to cleaner fuels and higher-value petroleum products, aligning with global standards.
Ojulari emphasized that the signing followed over six months of intense discussions and reflects a transition from traditional contractor-led approaches to a performance-driven model where risks and returns are shared. This signifies a strategic shift from past ineffective rehabilitation programs, which had not yielded sustainable results despite considerable financial investment.
The proposed collaboration will involve the Chinese partners providing engineering expertise, operational discipline, and investment capacity, with the intent to align their profits with the refineries’ performance. NNPC foresees this cooperation as a pathway to develop integrated energy and petrochemical centers at the Port Harcourt and Warri facilities, potentially unlocking value from Nigeria’s gas reserves while fostering domestic manufacturing and export-oriented activities.
While the MoU signals a commitment to advance discussions, it states that any binding agreements will require regulatory approvals and thorough commercial negotiations. This initiative complements Ojulari’s previous appeals for global technical partners during the Nigeria International Energy Summit 2026, where he highlighted the need for experienced partners who can offer technical and operational solutions rather than merely financial support.
Ojulari asserted that accountability and efficiency will be prioritized under this new model, with profit contingent upon the refineries meeting performance benchmarks. He articulated a vision for refineries to evolve into integrated industrial platforms, recognizing that a successful future hinges on emphasizing petrochemicals, gas monetization, and other value-added processes.
Historically, Nigeria’s refineries have faced significant challenges, characterized by underperformance and reliance on imports. The current administration is actively supporting efforts to revitalize these facilities within its energy security framework while encouraging private sector investments like the Dangote Refinery. This latest agreement reflects NNPC’s strategy to mitigate fuel import dependence and stabilize domestic supply by leveraging a partnership model that ties financial returns to operational performance, thus attempting to unlock the potential of Nigeria’s refining sector.
