NNPC considers equity partnership allowing Chinese firms to acquire majority stake in Port Harcourt and Warri refineries under new rehabilitation plan
The Nigerian National Petroleum Company Limited (NNPC Ltd) is considering a major restructuring plan that could see Chinese investors take a majority equity position in the Port Harcourt and Warri refineries as part of efforts to revive and reposition Nigeria’s refining assets.
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The proposed arrangement involves Chinese firms Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd., following a Memorandum of Understanding signed in Jiaxing City, China, on April 30, 2026.
Under the framework being explored, the Chinese partners may acquire up to 51 per cent stake in the refineries through an NLNG-style model that combines equity participation, joint governance and long-term operational responsibility.
The Chinese Stake Nigerian Refineries proposal is still at a preliminary stage, but it signals a shift from traditional rehabilitation contracts towards a deeper commercial partnership structure.
NNPC Group Chief Executive Officer, Bayo Ojulari, described the agreement as a milestone after months of discussions, noting that it aims to attract technically capable partners to restart and expand the country’s refining infrastructure.
He explained that the initiative is designed to unlock long-term value, improve operational efficiency and ensure the sustainability of Nigeria’s downstream petroleum sector.
Sources familiar with the agreement said the proposed structure mirrors the NLNG model, where investors hold equity stakes and participate directly in governance and operational decisions.
The arrangement would also involve rehabilitation works at the Port Harcourt and Warri refineries, alongside upgrades aimed at improving capacity, efficiency and compliance with cleaner fuel standards.
Beyond refining, the partnership could extend into petrochemical development and gas-based industrial projects, with plans for co-located industrial hubs around the refinery complexes.
Analysts say the move may reflect a strategic shift within NNPC towards attracting foreign technical expertise and capital to address longstanding inefficiencies in Nigeria’s refining sector.
Energy expert Clement Isong of the Major Energies Marketers Association of Nigeria said the equity-based model could improve accountability and operational performance by aligning investor returns with refinery efficiency.
He noted that the involvement of equity partners could help address capacity gaps that have historically affected refinery operations in the country.
The agreement remains non-binding and subject to further due diligence, regulatory approvals and final commercial negotiations before any binding terms are reached.
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If concluded, the deal could significantly increase Chinese participation in Nigeria’s downstream oil and gas industry and reshape the ownership structure of two of the country’s key refineries.
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