Chinese Firms to Take Over Operations of Warri, Port Harcourt Refineries as NNPC Signs Major MoU

By Tgnews Reporter

In a significant move aimed at reviving Nigeria’s struggling oil refining sector, the Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a Memorandum of Understanding (MoU) with two Chinese companies to restart, operate, and expand the Warri and Port Harcourt refineries.

The agreement, signed on April 30, 2026, in Jiaxing City, China, represents a major milestone in the federal government’s efforts to end decades of reliance on imported petroleum products and restore domestic refining capacity.

According to a statement by NNPC’s Chief Corporate Communications Officer, Andy Odey, the MoU was executed between NNPC and Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd.

The NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, who led the Nigerian delegation, signed alongside Guan Jianzhong, Chairman of Sanjiang Chemical Company, and Bill Bi, Chairman of Xingcheng Industrial Park Operation and Management Co. Ltd.

Ojulari described the partnership as a strategic step towards achieving long-term sustainability of Nigeria’s refining assets.

“All parties recognise mutually beneficial opportunities for the development and long-term sustainability of NNPC’s refining assets,” Ojulari stated after the signing.

Under the proposed arrangement, the Chinese partners will provide technical expertise to complete ongoing rehabilitation works at both facilities, assume roles in their day-to-day operations and maintenance, and drive expansion initiatives.

The deal also paves the way for a Technical Equity Partnership (TEP) that will focus on upgrading the refineries to produce cleaner fuels, enhance profitability, and boost petrochemical output.

Additionally, the partnership is expected to facilitate the development of gas-based industrial hubs around the refineries, potentially creating thousands of jobs and stimulating economic activities in the Niger Delta region.

The Port Harcourt Refining Company, with a capacity of 210,000 barrels per day, is undergoing rehabilitation at an estimated cost of $1.5 billion, while the Warri Refining and Petrochemical Company, with 125,000 barrels per day capacity, is being revamped under a contract worth approximately $897 million.

Although the Port Harcourt refinery briefly resumed operations in late 2024, it was later shut down due to operational and financial difficulties. The new partnership is expected to provide the technical and financial muscle needed for sustainable performance.

Ojulari noted that the MoU is non-binding at this stage and remains subject to regulatory approvals and further detailed negotiations.

The development comes as Nigeria continues to grapple with low refining output despite being Africa’s largest crude oil producer. Success in this partnership is expected to significantly reduce the country’s huge import bill for refined products, stabilize fuel supply, and create a more robust downstream sector.

Industry stakeholders have welcomed the move, describing it as a bold and necessary intervention that could mark the beginning of a new era for Nigeria’s refining industry, provided transparency, accountability, and strict adherence to project timelines are maintained.