NNPC Ltd 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 completion and operation of the Warri and Port Harcourt refineries.
The MoU was signed by the NNPC Group CEO, Bayo Ojulari; Chairman, Sanjiang Chemical Company, Guan Jianzhong and Chairman, Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd, Bill Bi, in Jiaxing City, China, last Thursday.
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.
As stated in a release on Monday by NNPC Chief Corporate Communications Officer, Andy Odeh,
Planned expansion and upgrades would elevate both the Warri and Port Harcourt refineries to cleaner, and more profitable product standards.
The potential collaboration also contemplated expanding the refineries’ petrochemical capacities and harnessing gas and downstream opportunities through the development of co-located, gas-based industrial hubs.
Speaking shortly after the signing Ojulari described the MoU execution as a significant milestone, after more than six months of concerted engagement between the technical and management teams of NNPC and the two Chinese companies, 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 noted.
The GCEO of NNPC Ltd further stated that 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.
“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,” it was added in the release.
