The evaluation for the potential partnership between the Nigerian National Petroleum Company Limited (NNPC) for the operation of Port Harcourt and Warri refineries has begun despite public opposition to the idea.
NNPC Group CEO Bayo Ojulari revealed that the Memorandum of Understanding (MoU) signed with the intended technical partners has reached a crucial stage of due diligence to select the most appropriate operators and ensure the commercial viability of the refineries.
Mr. Ojulari added that the partnership is not just about reviving the existing facilities and noted that in order for refinery to operate successfully, technical and business partners are needed. He further added that the current MoU is not a contract but a document to explore the possibilities of working together.
He further promised Nigerians that the evaluation will not add any more financial burden to NNPC as the potential investors will be covering all the costs of the due diligence process.
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According to Ojulari, the main aim is to make money from the downstream segment of the Nigerian oil industry through the development of its petrochemical value chain, as well as investments in the gas industry, including new methanol production facilities.
This development follows public outcry against the plan for hiring foreign firms to operate the refinery amid an expenditure of about $3 billion on repairing the Port Harcourt and Warri refineries. Public outcries arise from the doubt of the efficiency of the repair work, and the reason for bringing in foreign firms to handle the operations when there were assurances that the refineries had resumed operations.
Nigeria experienced a slight increase in its crude oil production in June as OPEC members are increasing their production after being affected by the Iran crisis. Nonetheless, OPEC’s total production has been falling short of the set production targets.
