By Francis Ajuonuma
The Nigerian National Petroleum Company Limited has moved to deepen foreign technical and financial collaboration, signing a Memorandum of Understanding with Chinese firms to fast-track the completion and operation of the Port Harcourt and Warri refineries—two critical but long-struggling national assets.
The agreement, signed in Jiaxing, China, involves NNPC Ltd, Sanjiang Chemical Company and Xinganchen (Fuzhou) Industrial Park Operation and Management Co Ltd under a proposed Technical Equity Partnership (TEP) framework aimed at restoring refining capacity and improving downstream efficiency.
Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, described the move as a strategic breakthrough after months of negotiations.
“All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets,” Ojulari said.
The proposed partnership will focus on completing outstanding rehabilitation work and on operating and maintaining the facilities to meet “best-in-class, sustainable performance” benchmarks. It also includes provisions to expand petrochemical output and to integrate gas-based industrial hubs around the refineries.
“The MoU reflects the parties’ shared intent to progress discussions in good faith,” the company stated, noting that final agreements remain subject to regulatory approvals.
Industry watchers see the development as part of broader efforts by the state oil company to reduce Nigeria’s reliance on fuel imports and reposition its refining sector for long-term viability.
Ojulari further stressed that the agreement is only an initial step toward securing technical equity partners capable of restarting and expanding the country’s refining infrastructure.
“This is an important step on the journey towards identifying partners to restart and expand NNPC’s refineries,” he added.
The deal signals a renewed push by NNPC to leverage foreign expertise and capital in resolving persistent inefficiencies that have kept Nigeria’s state-owned refineries largely dormant despite repeated rehabilitation efforts.
