The Nigerian National Petroleum Company Limited (NNPCL) has entered into a Memorandum of Understanding (MoU) with two Chinese industrial firms to establish a potential Technical Equity Partnership (TEP) aimed at finalized completion and long-term operation of the Port Harcourt and Warri refineries.

The agreement was signed in Jiaxing City, China, on Thursday, April 30, 2026, by NNPCL Group CEO, 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.

Strategic Objectives and Scope

According to a statement released by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye (noting the attribution to Andy Odeh in the report), the partnership is intended to ensure the "sustainable profitability" of Nigeria’s refining assets.

The MoU focuses on:

• Operational Stability: Securing technical expertise to restart and maintain the Port Harcourt and Warri facilities.

• Industrial Expansion: Exploring co-located petrochemical and gas-based opportunities at the refinery sites.

• Technical Equity: Identifying long-term partners to share both the technical burden and the financial yields of the assets.

"All parties recognize mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria," Engr. Ojulari stated, noting that the agreement follows six months of intensive technical engagements.

Context of Previous Rehabilitation Efforts

The move toward a technical equity model comes after significant capital expenditure by the Federal Government under the previous administration. Between 2021 and 2024, approximately $2.39 billion was allocated for the rehabilitation of the nation’s refineries:

While the Port Harcourt refinery reportedly commenced production in late 2024, operations were suspended approximately six months later. The NNPCL has not yet disclosed the specific financial implications or the exact cost of this new technical partnership with the Chinese consortium.

A New Direction for Downstream Assets

The shift toward a Technical Equity Partnership suggests a strategic pivot by the NNPCL to decentralize the management and financial risks associated with the country's aging refineries. By bringing in international partners like Sanjiang Chemical and Xinganchen Industrial Park, the NNPCL aims to leverage foreign technical expertise to overcome the persistent operational challenges that have historically hampered the country's refining capacity.