The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a Memorandum of Understanding (MoU) with two Chinese firms for the restart, operation and expansion of the Warri and Port Harcourt refineries.

In a statement on Monday, NNPC's Chief Corporate Communications Officer, Andy Odey, said the agreement was signed with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd.

He said the deal is expected to pave the way for a Technical Equity Partnership (TEP) aimed at completing ongoing rehabilitation works and ensuring efficient operations of the refineries.

The MoU was executed in Jiaxing City, China, on April 30, 2026, by NNPC's Group Chief Executive Officer, Bashir Bayo Ojulari, alongside the Chairman of Sanjiang Chemical Company, Guan Jianzhong, and Chairman of Xingcheng Industrial Park Operation and Management Co. Ltd, Bill Bi.

Under the proposed arrangement, the Chinese partners will support the completion of outstanding rehabilitation work at both facilities and take part in their operation and maintenance to achieve sustainable performance.

The partnership will also explore the expansion and upgrade of the refineries to meet cleaner fuel standards, improve profitability and boost petrochemical production capacity. It is further expected to support the development of gas-based industrial hubs around the facilities.

Speaking after the signing, Ojulari described the agreement as a major milestone following months of negotiations.

"All parties recognise mutually beneficial opportunities for the development and long-term sustainability of NNPC's refining assets," he said.

He added that the MoU represents a key step toward securing technical partners for the rehabilitation and expansion of the country's refineries, while also unlocking opportunities in petrochemicals and gas-based industries.

Ojulari, however, noted that the agreement is non-binding and subject to regulatory approvals and further negotiations.

The rehabilitation of the Port Harcourt Refining Company was approved in 2021 at an estimated cost of $1.5 billion, with contracts awarded to Italy's Saipem and other partners to restore its capacity of 210,000 barrels per day.

Similarly, the Warri Refining and Petrochemical Company is undergoing rehabilitation under a contract valued at about $897 million, aimed at reviving its 125,000 barrels per day capacity and integrating petrochemical production.

Both projects form part of NNPC's broader strategy to reduce Nigeria's reliance on imported petroleum products.

The Port Harcourt refinery had briefly resumed operations in late 2024 after years of inactivity but was later shut down due to operational and financial challenges.