After presiding over the failed $2.39billion rehabilitation projects, the Nigerian National Petroleum Company Limited (NNPCL) has set its sight on China as it signed a Memorandum of Understanding (MoU) with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, for potential Technical Equity Partnership (TEP) in support of the completion and operation of the Port Harcourt and Warri Refineries.
In March 2021, President Muhammadu Buhari administration Federal Executive Council (FEC) approved the sum of $1.5 billion for the rehabilitation of Port Harcourt refinery which operates two refineries – the old plant with a capacity of 60,000 barrels per stream day (bpsd) and a new facility with 150,000 bpsd, bringing the refinery’s combined crude processing capacity to 210,000 bpsd.
For the Warri refinery, FEC approved the sum of $1.48bn for its rehabilitation and Kaduna refineries in August 2021.
But despite the announced projected rehabilitation of the two refineries only the Port Harcourt Refinery was said to have been completed with production starting in November, 2023. But it was shutdown in May 24.
The then Minister of State for Petroleum Resources, Timipre Sylva said in 2021 that the rehabilitation of Warri and Kaduna refineries was awarded to Messers Saipem SPA and Saipem Contracting Limited at the combined total sum of $1.484 billion and will be rehabilitated in three phases of 21, 23 and 33 months.
Sylva said $897,678,800 will be spent to repair Warri refinery while Kaduna refinery will gulp $586,902,256, noting that the completion of the rehabilitation exercise will be in three phases spread over 77 months period.
But on Monday, NNPCL’s Chief Corporate Communications Officer, Andy Odeh, said in a statement that the MoU was signed by the Group CEO of NNPC Ltd, Engr. Bashir Bayo Ojulari; Chairman, Sanjiang Chemical Company, Guan Jianzhong and Chairman of Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd, Bill Bi, in Jiaxing City, China on Thursday, April 30, 2026.
In the statement, Odeh quoted the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, as saying that the MoU execution serve as a significant milestone, following more than six months of concerted engagement between the technical and management teams of NNPC and the two Chinese partners, Sanjiang and Xinganchen.
But the statement was silent on how much Nigeria will pay for the new rehabilitation.
“All parties recognise 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,” Ojulari noted.
The GCEO further stated that the MoU is an important step on the journey towards identifying potential technical equity partner(s) to restart and expand NNPC’s refineries, and to explore opportunities in co-located petrochemicals and gas-based industries.
The MoU reflects the parties’ shared intent to progress discussions in good faith, with any definitive arrangements to follow in due course and subject to customary approvals.