Nigeria’s state oil firm NNPC Ltd. has signed a preliminary agreement with two Chinese companies to complete rehabilitation and manage operations at the Port Harcourt and Warri refineries.
The memorandum of understanding targets a technical equity partnership with Sanjiang Chemical Company and Xinganchen Industrial Park to ensure sustainable performance through private-sector discipline and investment.
Group CEO Bashir Bayo Ojulari said the deal followed six months of negotiations and aims to restart the long-dormant facilities while expanding their petrochemical and gas-processing capacities.
The move marks a departure from traditional rehabilitation contracts, shifting toward a model where partners share equity and operational risk to improve accountability and long-term profitability.
Nigeria has spent over $2.5 billion on refinery maintenance since 2021, yet the state-owned plants have remained largely moribund, forcing the country to rely heavily on fuel imports until the emergence of the Dangote refinery in late 2023.
The collaboration includes plans to upgrade both facilities to meet cleaner energy standards and develop industrial hubs co-located within the refinery complexes to boost domestic production.
“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,” Ojulari noted in a statement on Sunday.
Definite arrangements remain subject to regulatory approvals, but the partnership represents a critical step in the government’s renewed push to achieve domestic energy self-sufficiency.
