NNPC Eyes Chinese Majority Stake in Port Harcourt, Warri Refineries
By Aboki Forex —
The Nigerian National Petroleum Company Limited (NNPC Ltd) is discussing a partnership that could give Chinese investors a controlling 51% stake in the Port Harcourt and Warri refineries. The move is part of efforts to revive the facilities and make them profitable over the long term.
The proposal follows a Memorandum of Understanding (MoU) signed on April 30, 2026, in Jiaxing City, China. NNPC Group Chief Executive Officer Bayo Ojulari signed the agreement with Sanjiang Chemical Company Limited Chairman Guan Jianzhong and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd. Chairman Bill Bi.
According to sources familiar with the arrangement, the deal goes beyond a normal rehabilitation contract. It could involve long-term equity ownership by the two Chinese firms. The structure is being designed around a model similar to Nigeria LNG Limited, where foreign investors hold majority equity, take part in governance, and share operational responsibilities.
Under the proposed framework, the Chinese companies would help complete ongoing rehabilitation work at both refineries. They would also handle operations and maintenance services to achieve sustainable performance standards. The collaboration is expected to increase refining capacity, improve profitability, and upgrade fuel production to cleaner standards.
Beyond rehabilitation, the parties are exploring investments in petrochemical and gas-based industrial projects around the refinery locations. An NNPC official familiar with the discussions said the scope includes capacity expansion, yield optimisation, petrochemical integration, compliance with clean fuel standards, and development of gas-based industrial hubs.
The official stated: “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 after over six months of negotiations. He said all parties recognised the long-term commercial opportunities tied to the refineries and the need for strong technical and financial partnerships.
The Port Harcourt refinery rehabilitation project had earlier been awarded to Italian engineering company Maire Tecnimont. 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. Civil society groups have called for Ojulari’s resignation over growing concerns surrounding refinery rehabilitation spending and the fresh MoU with Chinese firms.
Meanwhile, Clarivo Oil and Gas Ltd recently announced plans to construct a world-class oil refinery in Calabar, Cross River state. CEO Obidike Chukwuebuka said the proposed facility will be developed in multiple phases and feature state-of-the-art technologies. The company projects the refinery will come online within about five years, subject to regulatory approvals.