NNPC Signs MoUs with Chinese Firms for Refinery Rehab

The Nigerian National Petroleum Company Limited (NNPC) has signed memoranda of understanding (MoUs) with Sanjiang Chemical Company Limited and Xinganchen Fuzhou Industrial Park to rehabilitate the Warri and Port Harcourt refineries. This initiative is part of a technical equity partnership aimed at completing outstanding rehabilitation work.

Critics, including former President of the Organised Private Sector of Nigeria, Dele Oy, have raised concerns about the technical and financial capabilities of the Chinese firms, arguing that they lack the global refinery rehabilitation experience compared to established engineering, procurement, and construction (EPC) firms like Saipem and Tecnimont. The Nigerian oil and gas industry has seen a shift towards local companies, with firms like Seplat Energy and Renaissance Africa Energy emerging as significant players.

The backdrop of this new MoU includes previous controversies surrounding rehabilitation contracts approved under former President Muhammadu Buhari, with nearly $3 billion allocated for refinery rehabilitation projects.