The Nigerian National Petroleum Company Limited, NNPC Ltd., has signed a Memorandum of Understanding, MoU, with two Chinese companies for Technical Equity Partnership, TEP, to support completion and operation of Port Harcourt and Warri Refineries.
The MoU was signed with the Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd.
The deal was signed by the Group CEO, NNPC Ltd., Bashir 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.
Speaking shortly after the signing, Mr Ojulari said the potential framework would cover completion of outstanding work at the two refineries, together with operating and maintaining both facilities to achieve best-in-class, sustainable performance.
Mr Ojulari, in a statement on Monday by Andy Odeh, Chief Corporate Communications Officer, NNPC Ltd. said the planned expansion and upgrades would elevate both facilities to cleaner, more profitable product standards.
“The potential collaboration also contemplates expanding the refineries’ petrochemical capacities and harnessing gas and downstream opportunities through the development of co-located, gas-based industrial hubs.
“The MoU execution is 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.
“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,” Mr Ojulari said.
He further said the MoU was 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.
According to him, 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.