NNPC Signs China Deal to Revive Warri, Port Harcourt Refineries

NNPC has signed an MoU with two Chinese firms to restart and expand the long-idle Warri and Port Harcourt refineries under a new technical equity deal.

The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a Memorandum of Understanding (MoU) with two Chinese firms to rehabilitate and expand the long-dormant Port Harcourt and Warri refineries, marking what the company describes as a major step toward restoring Nigeria’s domestic refining capacity.

The agreement was signed in Jiaxing City, China, by NNPC Group Chief Executive Officer Bashir Bayo Ojulari, alongside Guan Jianzhong, Chairman of Sanjiang Chemical Company Limited, and Bill Bi, Chairman of Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd.

Scope of the Agreement

According to the reports seen By Visblog, NNPC, the MoU lays the groundwork for a Technical Equity Partnership that will focus on completing outstanding rehabilitation work, improving operational efficiency, and supporting long-term expansion of both refineries.

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Under the proposed arrangement, the Chinese partners are expected to provide engineering expertise, operational support, and investment funding. Their returns will be tied directly to refinery performance, a model NNPC says is designed to enforce accountability and avoid past failures.

The deal also includes plans to expand petrochemical output and establish gas-based industrial hubs around the facilities, potentially transforming them into integrated energy complexes.

Months of Negotiation

Ojulari said the agreement follows over six months of technical and commercial discussions between NNPC and the Chinese companies. He noted that the partnership aligns with his earlier call for global investors to take equity stakes in Nigeria’s refining sector.

READ MORE: Why Nigerians Are Still Paying More for Fuel Despite Dangote Refinery Sourcing Crude Locally

Speaking previously at the Nigeria International Energy Summit 2026, Ojulari had emphasized that the country’s refining challenges extend beyond financing to include technical and operational gaps.

Longstanding Challenges

Nigeria’s refineries in Port Harcourt, Warri, and Kaduna have faced decades of inefficiency, repeated shutdowns, and unsuccessful rehabilitation efforts, forcing the country to rely heavily on imported petroleum products.

Both the Warri and Port Harcourt refineries have remained largely inactive since May 24, 2025, when they were shut down for maintenance. Subsequent reviews revealed deeper structural and financial issues, leading to prolonged closures.

In February 2026, Ojulari disclosed that continued operations were resulting in significant losses, necessitating extended shutdowns to prevent further financial damage.

A previous $1.5 billion rehabilitation of the Port Harcourt refinery failed to deliver sustained operations, raising concerns about the viability of new efforts.

Not Yet Binding

NNPC clarified that the MoU is not legally binding. Any final agreement will depend on regulatory approvals and the outcome of detailed commercial negotiations.

READ MORE : NNPC Ltd Pivots to Technical Equity Model; Partners with Chinese Firms to End Refinery Deadlock

The company said the document represents a shared commitment to continue discussions in good faith.

Economic Implications

If successfully implemented, the project could reduce Nigeria’s dependence on imported fuel, improve supply stability, and ease pressure on foreign exchange.

The planned industrial hubs could also create jobs and boost manufacturing in the Niger Delta.

NNPC recently reported a profit after tax of N276 billion for March 2026 and remittances of N2.89 trillion for the first quarter, figures the government says reflect improving financial performance.

What lies ahead 

While the agreement signals renewed efforts to revive Nigeria’s refining sector, its success will depend on the final terms, regulatory approvals, and the ability of the performance-based model to deliver results where previous initiatives have struggled.

For now, the deal remains an early-stage commitment, with its real impact to be determined in the months ahead.