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🇳🇬 Nigeria /Energy & Infrastructure

To Revive Warri, Port Harcourt Refineries NNPC Signs MoU with Two Chinese Firms

From ThisDay · (1h ago) English Positive tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • The Nigerian National Petroleum Company Limited (NNPC) has signed a Memorandum of Understanding (MoU) with two Chinese firms for the potential Technical Equity Partnership (TEP) to revive the Warri and Port Harcourt refineries.
  • The NNPC's March revenue increased to N2.77 trillion, with profits rising to N276 billion, indicating improved financial performance.
  • The MoU aims to complete, operate, and maintain the refineries, potentially expanding their petrochemical capacities and developing co-located gas-based industrial hubs.

In a significant move to revitalize Nigeria's ailing refining sector, the Nigerian National Petroleum Company Limited (NNPC) has inked a Memorandum of Understanding (MoU) with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd. This collaboration signals a renewed commitment to bringing the Warri and Port Harcourt refineries back to full operational capacity. The NNPC's Group Chief Executive, Mallam Mele Kyari, described the MoU as a crucial milestone, emphasizing the mutually beneficial opportunities for sustainable profitability of the nation's refining assets. This initiative comes at a time when the NNPC is showing improved financial performance, with March revenues climbing to N2.77 trillion and profits nearly doubling from February. The partnership is expected to not only complete outstanding work but also enhance the refineries' operational efficiency and potentially expand their petrochemical capabilities, aligning with the broader goals of developing gas-based industrial hubs. This strategic alliance with Chinese firms represents a critical step towards achieving energy security and maximizing the value of Nigeria's oil and gas resources.

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.

— Bayo OjulariCommenting on the significance of the MoU signing with the Chinese partners.
DistantNews Editorial

Originally published by ThisDay in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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