• NNPC has signed an MoU with two Chinese firms to restart and expand the Warri and Port Harcourt refineries
• The deal involves NNPC, Sanjiang Chemical Company, and Xinganchen Industrial Park Operation and Management Co. Ltd
• The partnership will focus on completing pending rehabilitation work at both refineries

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has signed a Memorandum of Understanding (MoU) with two Chinese firms in a renewed push to restart and expand the Warri and Port Harcourt refineries.

NNPC disclosed the development in a press statement dated May 3, 2026, signed by its Chief Corporate Communications Officer, Andy Odeh.

According to the company, the MoU was signed in Jiaxing City, China, on April 30, 2026, by NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari; Chairman of Sanjiang Chemical Company, Guan Jianzhong; and Chairman of Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd, Bill Bi.

The agreement is expected to provide a framework for completing pending rehabilitation work at the Warri and Port Harcourt refineries, while also covering their future operation and maintenance to ensure more efficient and sustainable performance.

NNPC said the planned partnership will also focus on upgrading the facilities to improve product quality and boost profitability.

Beyond restoring refining operations, the company said the collaboration could also support the expansion of petrochemical production and create new gas and downstream opportunities through the development of industrial hubs located around the refinery sites.

“The potential collaboration also contemplates expanding the refineries’ petrochemical capacities and harnessing gas and downstream opportunities through the development of co-located, gas-based industrial hubs,” the statement reads in part.

Ojulari described the agreement as a significant milestone after months of talks between NNPC and the Chinese companies, saying it reflects growing alignment on the future of Nigeria’s refining assets.

“All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria, and the collective weight required for success,” Ojulari noted.

He added that the MoU marks a major step toward securing technical equity partners needed to restart and expand the refineries, while also opening up opportunities in petrochemicals and gas-based industries.

The latest development comes as NNPC continues efforts to revive Nigeria’s state-owned refineries, which have remained largely inactive for months.

The announcement also comes shortly after the company dismissed reports claiming it had begun selling scrap materials from the refineries, despite the prolonged shutdown of the facilities.

Operations at the plants were suspended on May 24, 2025, for scheduled maintenance that was initially expected to last 30 days.

A broader technical and commercial review of the Port Harcourt, Warri and Kaduna refineries began in October 2025 to evaluate their operational and financial viability.

In February 2026, Ojulari said the refineries were shut down after internal reviews showed they were running at significant losses and diminishing national value.

He also disclosed at the time that NNPC had already opened talks with a Chinese petrochemical company as part of plans to revive the facilities.

Despite mounting calls for privatisation, NNPC has repeatedly said it has no plans to sell the Port Harcourt Refining Company, insisting it remains committed to rehabilitation and continued ownership.

The refinery’s last major rehabilitation under former NNPC GCEO Mele Kyari reportedly cost $1.5 billion, but failed to deliver sustained operations.

Although it remains uncertain whether the latest agreement will lead to a successful turnaround, NNPC recently reported a profit after tax of N276 billion for March 2026 in its monthly performance report, suggesting a stronger financial position as it pursues another refinery revival plan.

Obasanjo says Nigeria’s refineries “will never work” as NNPC seeks new technical partners

Meanwhile, TheRadar earlier reported that Former Nigerian President Olusegun Obasanjo reiterated his long-held view that the country’s state-owned refineries are unlikely to become functional, as the Nigerian National Petroleum Company Limited (NNPC) continues efforts to secure technical partners for the Port Harcourt, Warri, and Kaduna facilities.

He emphasised that public-private partnerships (PPPs) remain the most viable model for sustaining large-scale infrastructure in the country, pointing to the success of the Nigeria Liquefied Natural Gas project as a key example.