The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a memorandum of understanding (MoU) with two Chinese companies to support the restart and expansion of Nigeria's Warri and Port Harcourt refineries, the state oil firm announced.
The agreement was signed in Jiaxing City, China, with Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd under a proposed technical equity partnership framework, according to a statement issued by NNPC.
Details of the Agreement
NNPC Group Chief Executive Officer Bashir Bayo Ojulari stated that the MoU followed more than six months of engagement between the parties. "All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC's refining assets in Nigeria," Ojulari said.
According to NNPC, the proposed framework covers the completion of outstanding work on the Port Harcourt and Warri refineries, as well as their operation and maintenance. The collaboration also includes plans to upgrade the facilities to produce cleaner petroleum products and expand their capacity, alongside efforts to increase petrochemical output and develop gas-based industrial projects linked to the refineries.
Strategic Importance
Ojulari noted that the agreement is part of ongoing efforts to identify technical equity partners to support the rehabilitation and long-term operation of the country's refining assets. "The MoU is a significant step on the journey towards identifying potential technical equity partners to restart and expand NNPC's refineries," he said.
NNPC added that the agreement reflects the parties' intention to continue discussions, noting that any final deal would be subject to further negotiations and customary regulatory approvals. The statement said the partnership could also involve the development of co-located industrial hubs to support downstream and gas-based activities.
Background on Nigeria's Refining Challenges
Nigeria has for decades struggled with the performance of its state-owned refineries, which have operated below capacity, according to NNPC. The country depends heavily on imported refined petroleum products despite being one of Africa's largest crude oil producers.
The Port Harcourt and Warri refineries are among key facilities undergoing rehabilitation as part of government efforts to restore domestic refining capacity, the company said. NNPC stated that the planned collaboration forms part of its broader strategy to improve efficiency and support the operation of its refining assets.
