Nigeria Partners with Chinese Firms to Revive Refineries

Nigeria National Petroleum Co Ltd (NNPC) on Monday announced a memorandum of understanding (MoU) with Sanjiang Chemical Co Ltd and Xinganchen (Fuzhou) Industrial Park Operation and Management Co Ltd to restart the Port Harcourt and Warri refineries.

NNPC had reactivated the refineries in 2024 but shut them down again within a year. The pauses, including at the Kaduna refinery, allow for "technical and financial reviews", NNPC said in an online statement July 30, 2025.

"The ongoing review indicates that the earlier decision to operate the Port Harcourt refinery prior to full completion of its rehabilitation was ill-informed and sub-commercial", NNPC reported then, attributing the statement to chief executive Bashir Bayo Ojulari.

NNPC in that statement ruled out the sale of the 2 Port Harcourt refineries.

The Port Harcourt refineries in Rivers state have a total crude distillation capacity of 210,000 barrels per day (bpd) while the Warri refinery in Delta state has a distillation capacity of 125,000 bpd, according to online information from the Bureau of Public Enterprises.

NNPC said in a press release Monday the MoU with the Chinese companies is for a "technical equity partnership".

"The potential framework would cover completion of outstanding work at the 2 refineries [Warri and the 2-plant Port Harcourt], together with operating and maintaining both facilities to achieve best-in-class, sustainable performance", NNPC said.

"Planned expansion and upgrades would elevate both facilities to cleaner, more profitable product standards", it added.

"The potential collaboration also contemplates expanding the refineries' petrochemical capacities and harnessing gas and downstream opportunities through the development of co-located, gas-based industrial hubs".

Ojulari said, "All parties recognize 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".

The MoUs are subject to customary approvals, NNPC said.

NNPC continues to seek "technical equity partners" to restart and expand its refineries, as well as explore co-locating petrochemical and gas-based industries within these sites, Ojulari said.

In an interview published September 10, 2020 then-managing director Mele Kyari told the local Channels Television that NNPC deliberately continued to keep all its 4 refineries shut down due to unprofitability from underutilization. Kyari cited crude theft.

To contact the author, email jov.onsat@rigzone.com