Nigeria’s state-owned oil company, the Nigerian National Petroleum Company Limited (NNPC Ltd), has signed a memorandum of understanding with two Chinese industrial firms to revive two long-dormant government refineries that have absorbed over $2.4 billion without delivering meaningful fuel production.
The agreement was reached in Jiaxing City, China, and involves Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd. The partnership is structured as a potential Technical Equity Partnership aimed at restoring and modernising Nigeria’s refining infrastructure.
The deal covers the rehabilitation of the Port Harcourt refinery in Rivers State and the Warri refinery in Delta State—two facilities that were once central to Nigeria’s domestic fuel supply but have struggled for years with repeated shutdowns and unsuccessful rehabilitation projects.
NNPC Group Chief Executive, Bashir Bayo Ojulari, said the collaboration is intended to unlock long-term value from the assets through engineering completion works, operational support, and improved maintenance systems designed for sustainable performance.
The framework also includes plans to upgrade both refineries to meet cleaner fuel standards, alongside broader expansion into petrochemical production and the development of industrial hubs that could attract additional investment, similar to China’s industrial cluster model.
According to NNPC, discussions between the parties have been ongoing for more than six months, covering technical, commercial, and management considerations before the formal signing of the agreement.
However, the company stressed that the MoU is not yet a binding deal, noting that further negotiations and regulatory approvals will be required before implementation begins.
The development comes as Nigeria’s downstream oil sector continues to evolve, especially with increased pressure from large private refining capacity such as the Dangote Refinery, which is reshaping competition in the domestic fuel market.
