NNPC Signs New Deal to Revamp Port Harcourt and Warri Refineries

A Fresh Push for Nigeria’s Refinery Revival 

The Nigerian National Petroleum Company Limited has signed a new agreement with two Chinese firms to accelerate the rehabilitation and restart of Nigeria’s refineries in Port Harcourt and Warri. 

This development comes nearly one year after the shutdown of the Port Harcourt Refining Company for maintenance, raising renewed hopes for improved fuel production and reduced dependence on imports. 

What the New Agreement Means 

The deal, structured as a Memorandum of Understanding (MoU), was signed with: 

• Sanjiang Chemical Company Limited 

• Xingcheng Industrial Park Operation and Management Co Ltd 

The agreement focuses on forming a Technical Equity Partnership, where partners will not just rehabilitate the refineries but also participate in their operation and long-term performance. 

 Combined refining capacity: 335,000 barrels per day 

According to NNPC, this move is a “critical milestone” in transforming Nigeria’s refining sector. 

Why This Deal Is Different 

Unlike previous rehabilitation efforts, this model introduces shared risks and returns. The Chinese partners are expected to bring:  

 Technical expertise  

️ Operational efficiency 

  Investment capacity

“The days of spending billions on rehabilitation without sustainable output are behind us,” said NNPC CEO, Bashir Bayo Ojulari.

This approach ensures partners only benefit when the refineries perform efficiently. 

Expansion Into Petrochemicals and Gas 

Beyond repairs, the collaboration will: 

• Expand petrochemical production 

• Support cleaner fuel standards 

• Develop gas-based industrial hubs 

These hubs could transform both refineries into integrated energy and industrial centres, unlocking value from Nigeria’s gas resources and boosting manufacturing. 

Background: Years of Struggles 

Nigeria’s refineries have faced: 

• Frequent shutdowns 

• Underperformance 

• Failed maintenance projects 

Previous investments include: 

• $1.5 billion for Port Harcourt refinery rehabilitation 

• $897 million for Warri refinery upgrades 

Despite these efforts, output has remained low, increasing reliance on imported fuel. 

What This Means for Nigerians 

If successfully implemented, this deal could: ✔ 

️ Reduce fuel import dependence  

Stabilise petrol supply  

 Save foreign exchange  

Create jobs in industrial hubs 

It also aligns with broader energy reforms and complements private investments like the Dangote Refinery. 

A New Strategy for Lasting Results 

NNPC’s latest agreement signals a shift from traditional repair contracts to performance-driven partnerships. By bringing in technical investors with a stake in success, Nigeria is taking a more sustainable approach to refinery management. 

If executed effectively, this could finally unlock the long-awaited potential of the country’s refining sector and strengthen energy security.