Chinese Investors May Acquire 51% Stake in PH, Warri Refineries

Nigeria is poised to potentially deepen its energy sector ties with China, as the Nigerian National Petroleum Company Limited (NNPC) explores a significant equity partnership that could grant Chinese investors a majority stake in the Port Harcourt and Warri refineries. This move, detailed in a Memorandum of Understanding (MoU) signed with Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd., signals a strategic shift towards leveraging foreign expertise and capital for the rehabilitation and commercial repositioning of these vital national assets.

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The Nigerian National Petroleum Company Limited is considering an NLNG-style equity partnership that could hand Chinese investors a majority stake of about 51 per cent in the Port Harcourt and Warri refineries as part of a broader plan to rehabilitate and commercially reposition the facilities.

The proposed framework, drawing inspiration from the successful Nigeria Liquefied Natural Gas (NLNG) model, goes beyond conventional rehabilitation contracts. It envisions a long-term equity participation by the Chinese partners, involving joint governance and shared operational responsibilities. This approach suggests a commitment to ensuring the refineries achieve 'best-in-class, sustainable performance,' a goal that has often eluded them under previous management.

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The MoU was signed in Jiaxing City, China, on April 30, 2026, by the Group Chief Executive Officer of NNPC Ltd, Mele Kyari; Chairman of Sanjiang Chemical Company, Guan Jianzhong; and Chairman of Xinganchen Industrial Park Operation and Management Co. Ltd, Bill Bi.

For Nigeria, this potential collaboration offers a pathway to revitalizing its refining capacity, expanding into higher-value petrochemicals, and improving fuel production standards. The NNPC's Group Chief Executive Officer, Mele Kyari, described the agreement as a 'major milestone,' emphasizing the mutual benefits and the collective weight required for success. This partnership could be instrumental in unlocking the full potential of these refineries, contributing significantly to the nation's energy security and economic diversification.

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Sources at the national oil firm privy to the MoU told our correspondent that the proposed partnership is being structured around an “NLNG-type model” featuring equity participation, joint governance arrangements, and long-term operational involvement.

While the details are still being finalized, the NNPC's proactive engagement with international partners like Sanjiang Chemical and Xinganchen underscores a pragmatic approach to addressing the challenges facing the oil and gas sector. The prospect of Chinese investment, coupled with technical expertise, offers a glimmer of hope for a more robust and profitable future for Nigeria's refining industry, moving beyond mere rehabilitation to sustainable growth and expansion.

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The scope includes capacity expansion, yield optimisation, petrochemical integration, and compliance with clean fuel standards and exploration of gas-based industrial projects in Nigeria,” an NNPC official said, pleading anonymity because he was not authorised to speak to the press.