NNPC considers 51% equity deal with Chinese partners for key refineries

The Nigerian National Petroleum Company Limited is weighing a new equity partnership model that could see Chinese investors take a 51 per cent majority stake in the Port Harcourt and Warri refineries as part of efforts to revive and reposition the facilities.

The plan follows the signing of a Memorandum of Understanding with Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd.. The agreement, signed on April 30, 2026, in Jiaxing, China, outlines a potential “technical equity partnership” aimed at overhauling the refineries.

NNPC’s Group Chief Executive Officer, Bayo Ojulari, signed the MoU alongside Sanjiang Chairman Guan Jianzhong and Xinganchen Chairman Bill Bi.

Insiders say the proposed deal goes beyond standard rehabilitation contracts and mirrors the structure of the Nigeria LNG Limited model, where investors hold majority equity, share governance, and participate in long-term operations. Under this arrangement, the Chinese firms could become part-owners and active operators rather than just contractors.

The partnership would cover the completion of ongoing rehabilitation works at both refineries, alongside operations and maintenance services designed to improve efficiency, safety, and reliability to global standards. Plans also include expanding refining capacity, boosting profitability, and producing cleaner fuels.

In addition, both sides are exploring the development of petrochemical and gas-based industrial hubs around the refinery sites to drive further value.

Ojulari described the MoU as a key milestone after months of engagement, noting that it reflects a shared commitment to unlocking the long-term commercial potential of Nigeria’s refining assets.

However, the agreement remains non-binding and subject to regulatory approvals. It will undergo extensive technical, financial, legal, and operational due diligence before any final contracts are signed.

Industry experts say the move signals a shift in strategy by NNPC, driven by concerns over the effectiveness of previous refinery rehabilitation efforts.

The Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, said the equity-based model could ensure better performance since investors would have a direct financial stake in the success of the refineries.

He noted that unlike traditional contractor arrangements, equity partners are more likely to prioritise efficiency and sustainability because their returns depend on the facilities’ performance.

The Port Harcourt refinery rehabilitation was previously awarded to Maire Tecnimont, while separate efforts are ongoing at the Warri refinery.

If finalised, the deal could significantly expand Chinese involvement in Nigeria’s downstream oil and gas sector.