The Nigerian National Petroleum Company (NNPC) Limited signed a Memorandum of Understanding (MoU) with two Chinese companies for the completion and operation of the Port Harcourt and Warri Refineries.
NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, signed the agreement with Sanjiang Chemical Company Limited Chairman Guan Jianzhong and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd Chairman Bill Bi in Jiaxing City, China.
The partnership explores a Technical Equity Partnership (TEP) to finish outstanding projects at the two refineries.
It also covers their operation and maintenance to reach high performance standards.
The plan includes upgrades that will produce cleaner and more profitable petroleum products.
The MoU further seeks to expand petrochemical capacities and develop gas-based industrial hubs near the refineries to tap into downstream opportunities.
Ojulari described the MoU as a major milestone. He noted that it followed more than six months of detailed discussions between NNPC teams and the Chinese partners.
“All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria,” Ojulari said.
He added that the agreement marks an important step towards finding technical equity partners to restart and expand the refineries while exploring co-located petrochemical and gas-based industries.
NNPC stated that the MoU shows the parties’ commitment to continue talks in good faith. Any final agreements will come later and will require necessary approvals.
The development raises hopes for improved local refining capacity and reduced dependence on imported petroleum products in Nigeria.
