Chinese Investors May Acquire 51% Stake in Port Harcourt and Warri Refineries as Nigeria Eyes NLNG-Style Deal
Nigeria is considering a major shift in its downstream oil sector that could see Chinese investors take a controlling 51 per cent stake in the Port Harcourt and Warri refineries. The move is part of a proposed NLNG-style partnership designed to revive the long-struggling facilities and improve their commercial performance.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has already signed a Memorandum of Understanding (MoU) with Chinese firms Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd. The agreement was signed in Jiaxing City, China, on April 30, 2026, marking the beginning of a potential long-term equity partnership.
According to officials familiar with the arrangement, the proposed structure goes beyond a typical rehabilitation contract. Instead, it is being modelled after the Nigeria LNG framework, where investors hold majority equity, participate in governance, and share operational control. If finalised, the Chinese partners would help complete outstanding work at both refineries while also taking part in their long-term operations.
NNPC officials say the deal could also reshape the refineries into modern industrial hubs. Plans under discussion include capacity expansion, petrochemical integration, and gas-based industrial development aimed at improving fuel quality, boosting output, and increasing profitability. However, the agreement remains non-binding and still requires regulatory approvals before becoming a final contract.
NNPC Group Chief Executive Officer, Bayo Ojulari, described the agreement as a “major milestone” after months of engagement, noting that it signals progress toward identifying technical equity partners capable of restarting and expanding Nigeria’s refining assets. Energy analysts and stakeholders have welcomed the proposed model, saying equity participation could improve efficiency, ensure accountability, and finally bring Nigeria’s refineries back to life after years of underperformance.
The proposed partnership will now undergo detailed technical, financial, and legal due diligence before any binding agreement is reached, with analysts watching closely to see whether it becomes one of Nigeria’s most significant refinery reform deals in decades.
source: punch