‘NNPC-Chinese refinery deal strategic for energy security, economic recovery’
A civil society organisation, the Nigeria Citizens Watch for Good Governance (NCWGG), has hailed the recently signed Memorandum of Understanding (MoU) between the Nigerian National Petroleum Company Limited (NNPC Ltd.) and two Chinese firms for the rehabilitation and expansion of the Port Harcourt and Warri refineries. In a statement issued yesterday by its chairman, Collins […]
NNPC Building
A civil society organisation, the Nigeria Citizens Watch for Good Governance (NCWGG), has hailed the recently signed Memorandum of Understanding (MoU) between the Nigerian National Petroleum Company Limited (NNPC Ltd.) and two Chinese firms for the rehabilitation and expansion of the Port Harcourt and Warri refineries.
In a statement issued yesterday by its chairman, Collins Eshiofeh, the group described the agreement as “a strategic masterstroke” capable of strengthening Nigeria’s energy security, reviving the downstream petroleum sector, creating jobs and reducing the country’s dependence on imported petroleum products.
The agreement involves Chinese firms, Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd., and is expected to cover the rehabilitation, restart, operations and expansion of the refineries.
According to the group, the deal represents one of the most significant refinery interventions since Nigeria returned to democratic rule in 1999.
NCWGG said the country had, over the years, spent billions of dollars on turnaround maintenance of refineries with little or no meaningful results.
It lamented that despite the huge investments, the refineries repeatedly failed to function effectively, forcing Nigeria to continue importing refined petroleum products.
The group, however, said the current agreement differed from previous arrangements because of the technical capacity and track record of the Chinese firms involved.
It cited major infrastructure projects executed by Chinese companies in Nigeria, including the Abuja-Kaduna railway, Lagos-Ibadan railway and Lekki Deep Sea Port, as evidence of China’s industrial and engineering capabilities.
According to the statement, the partnership goes beyond routine rehabilitation and is designed to ensure long-term sustainability, expansion of petrochemical capacity and the development of gas-based industrial hubs around the refineries.