Dare Babalola
The Nigerian National Petroleum Company Limited has signed a Memorandum of Understanding with two Chinese firms to support the completion, restart and operation of the Port Harcourt and Warri refineries.
The agreement was signed with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd under a proposed Technical Equity Partnership framework.
The deal was executed in Jiaxing City, China, by the Group Chief Executive Officer of NNPC Ltd, Bashir Ojulari; Chairman of Sanjiang Chemical Company, Guan Jianzhong; and Chairman of Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, Bill Bi.
Ojulari said the proposed partnership would focus on completing outstanding work at the two refineries, while also providing operations and maintenance support to ensure efficient and sustainable performance.
In a statement issued on Monday by the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, Ojulari said the planned upgrades and expansion would improve the facilities and enable production of cleaner, higher-value petroleum products.
He added that the collaboration would also explore expansion of petrochemical production capacities at the refineries.
According to him, the agreement also includes plans to harness gas and downstream opportunities through the development of gas-based industrial hubs located near the refinery sites.
Ojulari described the signing of the MoU as a major milestone after more than six months of engagements between NNPC and the two Chinese companies.
He said all parties had identified mutually beneficial opportunities aimed at improving the long-term profitability and sustainability of NNPC’s refining assets.
The NNPC boss added that the MoU marks an important step toward securing technical equity partners for the rehabilitation and expansion of the country’s refineries, subject to further negotiations and regulatory approvals.
