NNPC signs deal to revive, expand Warri, Port Harcourt refineries

The Nigerian National Petroleum Company Limited has entered into a new partnership with two Chinese firms as part of efforts to complete and operate the country’s key refineries in Port Harcourt and Warri.

Under the agreement, NNPC Ltd signed a Memorandum of Understanding with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd for a Technical Equity Partnership.

The deal is expected to provide technical and operational support aimed at ensuring the long-delayed refineries become fully functional.

The agreement was signed in Jiaxing by NNPC Ltd’s Group Chief Executive Officer, Bashir Ojulari, alongside the Chairman of Sanjiang Chemical Company, Guan Jianzhong, and Chairman of Xingcheng Industrial Park, Bill Bi.

The partnership reflects ongoing efforts by NNPC Ltd to attract foreign investment and technical expertise to boost Nigeria’s refining capacity and reduce reliance on fuel imports.

Speaking shortly after the signing, 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.

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,” 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 petrochemical 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. (NAN)

Join Very Nigerian WhatsApp Channel
For Verified Breaking News, Exclusive Reports, Trending Stories, And Real-time Updates.
CLICk HERE TO JOIN!