By Kelvin Alohan
The Nigerian National Petroleum Company Limited (NNPC Ltd.) is seeking technical equity partnerships with experienced refinery operators to ensure the sustainable performance of its refineries.
The Group Chief Executive Officer (GCEO), NNPC Ltd., Bayo Ojulari, disclosed this while briefing journalists in Abuja on Tuesday.
Ojulari said the company would partner with operators with proven track records in managing refineries and petrochemical plants, while allowing them to take equity stakes in the facilities.
According to him, the model is designed to align the interests of NNPC and its technical partners towards achieving sustainable and efficient refinery operations.
“Chinese investors have shown strong interest in the two refineries, although no final agreement has been signed,” he said.
The NNPC boss explained that an existing Memorandum of Understanding (MoU) allows the Chinese team to conduct technical studies on the refineries before submitting a proposal to the national oil company.
“Once the Chinese finish the report of their study, they will come back to us with a proposal. Following that proposal, we will go into negotiations, both commercial and technical,” Ojulari said.
He said the seriousness of the Chinese investors was demonstrated by the deployment of 33 senior engineers, who had spent about three months assessing the facilities.
Ojulari explained that the outcome of the technical assessment would determine the next steps towards a possible partnership on the rehabilitation and operation of the refineries.
He, however, disclosed that work had yet to commence on the Kaduna Refinery, although NNPC remained committed to advancing the process.
The NNPC GCEO said the company was repositioning itself to become a globally competitive energy company, stressing the need for higher standards of transparency, accountability and sustainable performance.
He said the company was targeting the standard of Saudi Aramco, the Saudi Arabian state-owned energy giant.
“We are going to be Saudi Aramco. That is what we are talking about. Nothing less,” Ojulari said.
He added that achieving the ambition would require NNPC to strengthen its governance structures, transparency and overall performance standards.