New information has surfaced regarding the recently signed Memorandum of Understanding between the Nigerian National Petroleum Company Limited and two Chinese firms — Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd — to explore a potential Technical Equity Partnership aimed at supporting the completion and operation of the Port Harcourt and Warri refineries.

Findings on Sunday showed that the arrangement does not constitute a contract award or a new financial commitment, amid heightened public scrutiny of the state-owned refineries, according to The Punch.

The clarification comes as public debate and speculation intensify over the agreement signed by NNPC with the Chinese firms as part of efforts to rehabilitate Nigeria’s long-troubled refineries.

Last Monday, the national oil company disclosed that it had signed a new agreement with the two Chinese firms to fast-track the delayed rehabilitation and commercial restart of Nigeria’s refineries, while creating an avenue for potential technical equity partnerships.

The agreement was formalised on April 30, 2026, in Jiaxing City, China, with NNPC Ltd’s Group Chief Executive Officer, Bashir Bayo Ojulari, signing alongside the Chairman of Sanjiang Chemical Company, Guan Jianzhong, and the Chairman of Xingcheng Industrial Park, Bill Bi.

According to the national oil company, the proposed framework would also cover refinery expansion, deeper petrochemical integration, and the establishment of gas-based industrial hubs around the facilities.

However, the announcement has sparked widespread public reaction and heightened scrutiny over the future of Nigeria’s refineries, as industry experts, energy stakeholders, and concerned citizens question issues of transparency, accountability, funding arrangements, and the long-term commercial sustainability of the proposed partnership.

A senior company official, who spoke in Abuja on Sunday on condition of anonymity due to the sensitivity of the matter, dismissed what he described as “false narratives” surrounding the deal, clarifying that the agreement signed with the Chinese firms is only a preliminary framework to explore potential areas of collaboration.

The official emphasised that NNPC has made no financial commitment under the arrangement and that no government funds will be used for the refinery rehabilitation.

He explained that the agreement merely sets out a preliminary framework for discussions on potential areas of collaboration, including financing, operations, maintenance support, petrochemical development, and gas-based industrial projects.

The official said, “It is important to clarify, and one of the first things to clarify is that it is not an agreement or a financial agreement. It is an understanding with the two parties who are interested in exploring opportunities to revamp and expand the capacities of the refinery.

“The Memorandum of Understanding is a preliminary, non-binding agreement that reflects the mutual intention of the parties to explore areas of collaboration and jointly develop a framework for partnership. The scope of discussions includes financing, support for ongoing projects, operations and maintenance, potential expansion into petrochemicals, and other gas-based industrial initiatives.

“What we signed is not an award of contract. It does not commit NNPC Limited to any fresh rehabilitation expenditure. That point must be made very clear because a lot of false narratives have emerged suggesting that the company has already committed huge sums or entered another spending cycle on the refineries. That is completely incorrect.”

The official added that he would have provided a copy of the agreement to illustrate the company’s careful and transparent management of the arrangement, but was restricted from doing so by contractual obligations.

The source also revealed that talks under the framework would focus on financing models, support for ongoing projects, operations and maintenance structures, petrochemical prospects, and other gas-based industrial initiatives.

He added that the long-term goal is to assess the feasibility of establishing an Incorporated Joint Venture with strategic investors able to provide both technical expertise and financial strength.

“The long-term objective is to evaluate the possibility of establishing an Incorporated Joint Venture arrangement. However, the immediate next step is for both parties to work together to define the detailed commercial, technical, and operational framework that could guide any future partnership,” he said.

The official acknowledged Nigerians’ concerns over accountability and the substantial sums previously spent on refinery rehabilitation with limited visible improvement in performance.

However, he insisted that under the company’s current leadership, no new refinery rehabilitation programme has been approved since 2025.