MoU for Warri Refinery Rehabilitation Signed with a Real Estate Company - Oye

Added: 2026-05-14

[00:00:05]The Nigerian National Petroleum Company Limited NPCL has signed a memorandum of understanding with two Chinese companies in a move to revive its alien refineries in Paparot and Warry. The development took place as the NNPC in its monthly report summary for March said that its revenue during the month rose to 2.77 trillion naira from 2.68 trillion naira in February. representing a modest month-on-month increase. The model, according to a statement signed by the company, signals a shift away from purely contractor-led rehabilitation towards deeper operational and financial collaboration. Joining us on the show to discuss this latest move by NNPCL is Dele Oui, former president of the organized private sector of Nigeria.

[00:00:53]Good morning, Mou. Good to see you on the morning.

[00:00:56]when we discussed this subject earlier in the week and I was uh very categorical in saying that I don't understand this MOU or the contradictions leading to this MOU. Um the uh former management of uh the uh NNPCL said they had technically rehabilitated the pot refinery and it was working.

[00:01:22]Then under uh bio jewelry, we've been having a lot of back and forth. First they said the refinery will be shut down for some 30-day maintenance. Uh then oh the refineries will be sold. Then he came back they will not sell again. Now memorandum of understanding with two Chinese companies that are not even backed by the Chinese government. If you don't have a GTOG arrangement with the Chinese, you will have problems. So I raised issues about the opakeness and I hope this is not another job for the boys deal for the boys being promoted by trying to create a small empire for himself. And I said the Nigerian president, president Bameu should look into this and cancel that arrangement.

[00:02:13]Some people say oh it's not a limited liability company. What we know is that NNPCL is owned by Miy and uh and Ministry of Petroleum Resources. Until they allow uh the people on this table to buy shares, you cannot say it's a it's just a public company. No, it is still controlled by the Nigerian government for the benefit of those who do not of those persons who do not know that. But do you think it's a very important development uh that will help bring the revenue and that will yield results?

[00:02:48]Ignore my own skepticism. I just want to hear you out.

[00:02:52]>> Well, first of all, uh I work for Alliance for Econom Research and Ethics.

[00:02:58]We've done a due diligence on the two companies compared to Techn Point SPA and Cypen SBA who are the contractors for worry and pot refineries who are internationally acclaimed engineer I mean engineering companies who have the capacity and the competence because they have doing several of turnarounds. These two companies are nothing close to it. The first company sen chemical is not an EPC country. It's not an engineering company. They into the downstream. They more into chemicals. They've never run any refinery. They never rehabilitated one.

[00:03:42]The company is registered in it's a public company registered in the Hong Kong stock exchange. I think 2003 or so.

[00:03:49]And if you even look at the company's fundamentals recently, he's running he's actually running low on cash. He's going through some several short borrowing. So he doesn't even have the financial. He doesn't have the technical competence.

[00:04:01]He has never done any similar. They're into hydrocarbons.

[00:04:05]And although they claim their website they are involved but there's no evidence of them working with any refinary in the world. The second company which is Zan in Fuzu that one is just a real estate company. They're into industrial parks. There is no evidence anywhere in the world where they have been involved in any refinery or they run a refinery. So and I what I've also done at alliance we benchmark those two companies with uh the current contractors that were alle failed us on the core business EPC uh both of the first two companies that work on refin they are qualified sen chem sen chemical fine chemicals while fuz industrial park management then we go to into crude oil refinary Experience technique is technode is global. Caip is global.

[00:05:02]Saien non zen none. You go to global EPC track record extensive with tech techn technipen extensive limited for sen because they in the downstream. Then we have the say downstream that they bring it from the ground. They are not involved to refiner or operation of any refinery. So then for all the points we mentioned public listed uh the one for the two companies that were involved before are public listed the third that I s also public listed but is having declining margins I think about 5.7% year on year declining >> companies they found that the chairman had a legal issue >> so then on anything if you see all the duth you can see all the fundamentals it won't book what I'm where I'm trying to establish here is first of all there's even a fundamental issue the issue is we have not resolved the past you are familiar with the issue of our beta awards how Nigeria sover several years the P and IND 11 billion which was about 30% of our GDP at the material time we are playing it to another have we resolved the past have we found out of the $ 1.5 billion that was approved for refinary how much disposed what was the deliverable and if indeed we hold them to account. N is silent on that. N is also silent on the worlden refinery where money was also approved and money collected.

[00:06:37]>> He said they said fire was burning. So the refiner >> no the no no the only work for 30 days and was shut down for uh for them to look at what the issues are. He has never been opened while the other one despite the pygmy that was organized to put by former GMDs. Yes, they were didn't see they were all going there to go and say he's working >> and I used to tell them that if something is working is the product of the not by people going there even some very painful >> for the president who say it's working.

[00:07:07]>> No, I am not I'm not aware of I'm not president. That's not where I'm going.

[00:07:11]What I'm trying to say is >> to avoid to avoid making the same mistake >> of another several years of litigation.

[00:07:19]>> The first issue is to find out NP should answer three questions. One, have have they resolved have they determined the current contract of the two existing contractors? If they have determined it, what is the value Nigeria got for the money collected? Then thirdly, then before you go to the issue of getting to a new marriage, until you resolve the past, we are going to be setting ourselves up which some of these issues, this type of adultery that the MC is trying to commit can be used against it as the reasons that frustrate when they valid you know what I'm saying when you are involved in sharing some papers. Oh yeah.

[00:08:06]Nigerian.

[00:08:07]Let me ask you a few questions based on what you said. Um first thing is that the NNPCG CEO had actually given a rationale for the choice of these at least for Sanjiang. He said that modern refineries are increasingly designed as integrated energy hubs rather than standalone fuel plants. And so they are experienced in converting uh refinary byproduct into high value chemicals uh like you know poly propeline and suffocants sactants has made them the choice for this particular contract then the other part of my question would then be have you seen the terms of the >> well this is part of the what we've tried to do even the terms of the old contract with the two other companies you can't get it do most of the information we rely on what >> the other contract was it under this under by your jewelry.

[00:08:56]>> No, it's not under here.

[00:08:57]>> So because I'm saying because no in my introduction I talked about >> I ra I raised a fundamental issue. If you are involved in a relationship, why is NPC not talking about the old contracts and the status of those contracts?

[00:09:12]>> Is that under investigation that the FC?

[00:09:14]>> Yes, EFC has recovered money.

[00:09:16]>> The allegations that there were some criminal infractions FC money is ongoing investigation. Then on what basis are you entering to this new marriage?

[00:09:25]That's what I'm saying.

[00:09:26]>> That's what I was asking about >> because that creates a mix of because one of the things let me just that's my question. The question is that cuz I just want it you know a a a broader conversation around this. I know there's a lot of distrust with the NNPC because of the anticidence but what would be the other option? The refineries are moribond obviously seems like >> correct what you have said.

[00:09:49]>> Okay. So it seems like >> the NP is far different from the that's saying I can tell you that we've seen them they publish their report publicly now >> you can see there's been improved remittance to the >> report in fact the one the monthly report >> we talking monthly reports we're able to now benchmark what they are doing and we to be fair to Julary since he entered we see there have been less talk about NPC there's a level of confidence >> you know when you appoint people from the industry. He has a reputation for himself to live up to expectation. It's not that you appoint them the office will leave them up. He was already there before he got there. So we have confidence in him. But this is like every human action. I think this is a mistake.

[00:10:36]>> I don't maybe they need to give us more information on >> what we are saying is because they haven't seen the recommendation MP should not go ahead.

[00:10:42]>> Okay.

[00:10:42]>> Because these two companies have nothing to offer Nigeria. But they should sell refineries as crap.

[00:10:47]>> In terms of money, they don't have private sector.

[00:10:50]>> They don't have the capacity technically. They don't have the experience.

[00:10:53]>> I'm sorry. I'm sorry. No, no, you're losing. I'm sorry. With your respect, you said this is a mistake.

[00:10:57]>> Yes.

[00:10:58]>> How do you mean? Is it that they Please don't mind me. Is it that they were sleeping or they use veil to cover their eye or they tied their nose before they went all the way to China? Do you know how many hours >> to flight? Wait, wait, wait, wait. You know how can you how can you fly over 60 70 hours to China and you say it's a mistake? Did you just can you just enter mistake enter flight to China?

[00:11:24]>> You can see >> 20 hours to China. But what do you mean by this? I mean what do you >> what I mean by that tourism is the major attraction.

[00:11:31]>> No no in every mistake enter >> they bound to mistakes. I don't think the NNPC deb went into this thing by mistake. Maybe they've not done enough.

[00:11:42]They said they spent six months. The due diligence they did may not have been fine.

[00:11:46]>> If you say they spent six months, you let me let me be reading your sources.

[00:11:51]You just went to their website now.

[00:11:52]Bangard News Business Insider International Daily Trust and everything. If if you can see this in less than in fact even GPC can do this one. If you can see this in less than how many hours?

[00:12:06]>> So NPC has been doing this for months.

[00:12:08]>> Wait first. How can you say they made a mistake for this?

[00:12:11]>> No, what do you mean?

[00:12:12]>> I'm not defending any person.

[00:12:14]>> Go ahead, please.

[00:12:15]>> What I look at is someone's track record >> compared to what we had in the past. The coin MPC is far different is an much more improved MPC.

[00:12:24]>> Okay.

[00:12:25]>> So, I'm not also forgiving them that they made this mistake. What we are suggesting is that >> with what we have seen, these two companies have nothing to offer Nigeria.

[00:12:35]They have no professional experience.

[00:12:38]They have no engineering experience.

[00:12:39]They have never been the industry in the to run a refinery of this magnitude.

[00:12:43]They've never run any.

[00:12:45]>> It's an intentional act. This is what they sold put in the med. How you got what you want?

[00:12:51]>> No, no, no. My background my background will presume innocence. So, that's why I said I said the anti and I'm glad you talked about the new phase of an MC.

[00:13:00]That's why I'm also trying to understand to because it has been different in the new phase and it's not always you know I mean so what I what I would I mean hopefully in the next few days the details of theou the the the procedure the process of appointing these two um you know industries or partners in the rebuilding or rehabilitation of the refineries who don't >> are not qualified for anything the agreement does not make you >> all right these two these two companies incompetent.

[00:13:31]>> If you say incompetent, don't say it's a mistake again. Don't repeat G to G arrangement better. Maybe with Synopek or Petro China.

[00:13:40]>> You see, government does not do business. One of the biggest mistake we make in Nigeria is for government to be signing contract with private entities.

[00:13:48]>> No, but you're talking about China now.

[00:13:50]>> No, when I say government does not do business, even the China, China will still send their companies to come and operate. The Chinese government is not operating Nigeria as a company. So when when our public officers go abroad signing agreement with private entities, that's where we have all these challenges.

[00:14:07]>> Interesting.

[00:14:07]>> And our history, we have lost 76 billion dollars in the last how many years within the just real quickly. Can I just ask you something? Do you stand by all of this you release here?

[00:14:19]>> Yes.

[00:14:20]>> Hope you not a mistake tomorrow.

[00:14:22]>> Professional professional.

[00:14:24]>> Thank you, Mr. Thank you so No, you will buy advancements.

[00:14:27]>> All right. So, we're out of time, but keep questions and I expect that we should get responses, you know, in due course.