NNPC Weighs Giving Chinese Investors 51% Stake in Port Harcourt, Warri Refineries

By Adedapo Adesanya

The Nigerian National Petroleum Company (NNPC) Limited is considering a new partnership model that could give Chinese investors a majority 51 per cent stake in the Port Harcourt and Warri refineries as part of efforts to revive and commercially reposition the struggling national assets.

Details of the proposed arrangement emerged after NNPC signed a Memorandum of Understanding with China’s Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd. for what the national oil company described as a “potential technical equity partnership”.

The agreement, signed on April 30 in Jiaxing City, China, involved NNPC’s chief executive, Mr Bayo Ojulari, Sanjiang Chemical Chairman, Mr Guan Jianzhong, and Xinganchen Chairman, Mr Bill Bi.

According to reports, the framework is modelled after the Nigeria LNG structure, where investors hold majority equity, participate in governance and remain actively involved in operations over the long term.

Under the proposed arrangement, the Chinese firms are expected to help complete outstanding engineering and rehabilitation work at the Port Harcourt and Warri facilities while also providing operations and maintenance services aimed at delivering sustainable, world-class refinery performance.

Beyond restarting the plants, the partnership is expected to target capacity expansion, improved refining yields, cleaner fuel production and stronger profitability.

The agreement also opens the door to broader industrial ambitions, including petrochemical integration and gas-based industrial projects built around the refinery corridors.

Recall that Mr Ojulari, at the signing ceremony in April, described the deal as a major breakthrough following more than six months of negotiations.

“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,” he said.

He added that the MoU marked an important step towards identifying technical equity partners capable of restarting and expanding Nigeria’s state-owned refineries.

“The MoU is a significant step on the journey towards identifying potential technical equity partner(s) to restart and expand NNPC’s refineries and to explore opportunities in co-located petrochemical and gas-based industries,” Mr Ojulari stated.

Reports indicate that the arrangement remains non-binding and subject to technical, financial, legal and regulatory reviews before any final commercial agreements can be executed. Due diligence will cover engineering performance, operational viability, financial structure, commercial feasibility and legal compliance.

The Port Harcourt refinery rehabilitation contract had earlier been awarded to Italian engineering giant Maire Tecnimont, while separate repair efforts were also launched at the Warri refinery.