NNPC Considers Chinese Equity Partnership for Port Harcourt and Warri Refineries

Nigerian National Petroleum Company (NNPC) Limited is evaluating a new investment structure that could introduce Chinese partners into the ownership and long-term management of the Port Harcourt and Warri refineries as part of efforts to reposition the facilities for sustainable commercial operations.

The proposed arrangement follows the signing of a memorandum of understanding between NNPC and two Chinese companies focused on refinery engineering, industrial operations and petrochemical development.

The agreement was executed in China by NNPC Group Chief Executive Officer Bayo Ojulari alongside executives of Sanjiang Chemical Company Limited and Xinganchen Industrial Park Operation and Management Co. Ltd.

Industry sources familiar with the discussions said the framework under consideration goes beyond standard refinery rehabilitation contracts and could involve direct equity participation by the Chinese firms in the refining assets.

According to findings, the structure being explored resembles a joint venture model where technical partners maintain ownership interests, participate in governance and support operational management over an extended period.

The discussions are expected to cover the completion of outstanding engineering and upgrade works at the Port Harcourt and Warri refineries, alongside broader plans aimed at improving efficiency, production reliability and profitability.

Sources also indicated that the partnership could include refinery expansion projects, petrochemical integration and the development of gas-based industrial facilities around the refinery locations.

Officials familiar with the talks said the objective is to transform the refineries into commercially competitive industrial assets capable of meeting modern fuel specifications while supporting Nigeria’s domestic energy needs.

The current agreement remains non-binding and is subject to further negotiations, technical reviews, commercial assessments and regulatory approvals before any final investment decisions are reached.

Analysts said the move reflects a broader shift in NNPC’s approach toward attracting technical investors with operational expertise and long-term financial commitment rather than relying solely on traditional contractor-based rehabilitation models.

Energy market stakeholders noted that introducing equity investors into refinery operations could strengthen accountability, improve maintenance standards and create stronger incentives for sustained operational performance.

The Port Harcourt and Warri refineries have faced repeated rehabilitation delays and operational setbacks over the years despite multiple government-backed upgrade programmes.

Industry observers believe the success of any new partnership structure will largely depend on governance transparency, commercial viability and the ability of the refineries to operate competitively in Nigeria’s increasingly evolving downstream petroleum market.