RismadarVoice Reporters
May 22, 2026
The Nigerian National Petroleum Company Limited (NNPC Ltd) is considering a major restructuring plan that could see Chinese investors take up to 51 per cent equity stakes in the Port Harcourt and Warri refineries, as part of efforts to rehabilitate and reposition the facilities for commercial viability.
The proposed arrangement is modelled after the Nigeria LNG (NLNG) framework, which allows for equity participation, joint governance, and long-term operational involvement by investors.
Details of the plan emerged following a Memorandum of Understanding (MoU) signed between NNPC Ltd and Chinese firms Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd. in Jiaxing City, China, on April 30, 2026.
The MoU was signed by the Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, alongside representatives of the Chinese firms.
According to findings, the proposed partnership goes beyond traditional refinery rehabilitation contracts and may involve equity participation by the Chinese investors in the two refineries.
Sources within NNPC disclosed that the framework being considered mirrors the NLNG structure, where investors hold majority equity and play active roles in governance and operations over the long term.
Under the arrangement, the Chinese partners are expected to assist in completing outstanding rehabilitation works at both refineries, as well as provide operations and maintenance support to improve efficiency and output.
The partnership also includes plans to expand refinery capacity, improve profitability, and upgrade production to cleaner fuel standards, in line with global environmental requirements.
Officials also indicated that the collaboration could extend into petrochemical and gas-based industrial projects, with the development of co-located industrial hubs around the refinery sites.
“The scope includes capacity expansion, yield optimisation, petrochemical integration, and compliance with clean fuel standards,” an NNPC official said.
Speaking after the signing, Ojulari described the MoU as a significant milestone in ongoing efforts to revive Nigeria’s refining assets through technical and financial partnerships.
He said the agreement reflects a long-term strategy to identify capable partners who can help restart and expand refinery operations while exploring broader industrial opportunities.
Analysts note that the MoU remains a non-binding agreement, meaning final decisions will depend on due diligence, regulatory approvals, and further negotiations before any equity transfer is concluded.
Energy experts have described the proposed model as a shift towards a more commercially driven structure, arguing that equity participation could improve efficiency and accountability in refinery operations.
However, stakeholders also note that the arrangement is still at an early stage and does not yet represent a final investment commitment.
