The Nigerian National Petroleum Company Limited (NNPCL) has 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 collaboration through a potential Technical Equity Partnership (TEP) for the reactivation of the moribund Port Harcourt and Warri refineries for operations.
The pact was signed by the NNPCL’s Group Chief Executive Officer, Engr. Bayo Oujlari; Chairman, Sanjiang Chemicals Company, Guan Jianzhong; and Chairman of Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd, Bill Bi, last Thursday in Jiaxing City, China,
According to the terms of the MoU, it will cover completion of outstanding work at the two refineries, together with operating and maintaining both facilities to achieve world-class and sustainable operations of the refineries.
The planned expansion and upgrade would position both facilities for cleaner, more profitable product standards. The potential collaboration of the NNPCL and the Chinese firms is also aimed at expanding the refineries’ petrochemical capacities and harnessing gas and downstream opportunities through the development of co-located, gas-based industrial hubs.
- Advertisement -
Speaking after the signing of the pact, the GCEO of NNPCL described the MoU execution as a significant milestone after more than six months of concerted engagement between the technical and management teams of NNPCL and the two Chinese partners,
He said: “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 explained that the MoU represented an important step in the NNPCL management’s efforts in identifying potential technical equity partner(s) to restart and expand the two refineries, and to explore opportunities in co-located petrochemicals and gas-based industries for national development.
