The Nigerian National Petroleum Company Limited (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., to form a Technical Equity Partnership (TEP) aimed at restarting and expanding the Port Harcourt and Warri refineries.
The agreement was signed in Jiaxing City, China, by NNPC’s Group CEO, Mr. Bashir Ojulari, alongside Guan Jianzhong, Chairman of Sanjiang Chemical Company, and Bill Bi, Chairman of Xingcheng (Fuzhou) Industrial Park.
Following the signing, Ojulari highlighted that the MoU would cover the completion of outstanding work at the two refineries, as well as their operation and maintenance, with an emphasis on achieving top-tier, sustainable performance. Ojulari also stated that the planned upgrades and expansion would elevate both refineries to cleaner, more profitable product standards.
“The partnership will not only focus on the refineries’ completion but will also aim to expand their petrochemical capacities, harness gas resources, and create downstream opportunities through the development of gas-based industrial hubs in the vicinity,” he said.
The MoU represents a significant milestone, following over six months of extensive negotiations between NNPC and the two Chinese partners. Ojulari emphasized that the collaboration is geared toward long-term, mutually beneficial opportunities for NNPC’s refining assets, and will help to secure the long-term profitability and sustainability of Nigeria’s refining industry.
This MoU is a crucial step in NNPC’s efforts to identify potential technical equity partners to restart and expand the refineries, while also exploring opportunities for co-located petrochemical and gas-based industries. Ojulari noted that the parties involved have shown a strong commitment to advancing discussions in good faith, with any definitive agreements subject to the necessary approvals.
