NNPC to hand over Kaduna, Warri refineries to private operators
The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to transfer the management of its Warri and Kaduna refineries to private entities. This was revealed in a recent advertisement posted on X by NNPCL’s official account.
The notice indicates that the selected private firms will be tasked with providing Operations and Maintenance (O&M) services for the Warri Refining and Petrochemical Company (WRPC) and the Kaduna Refining and Petrochemical Company (KRPC). The advertisement emphasizes that interested companies should have extensive experience in maintaining product tanks/storage facilities and in commissioning, start-up, and turnaround operations.
The call for applications requires companies to detail their experience in refinery projects over the past 20 years, including commissioning, start-up, and post-commissioning activities.
The NNPCL’s advertisement reads, “Expression of Interest (EOI) for the Provision of Operations and Maintenance (O&M) Services for NNPC Limited Refineries (Combined Tender): Warri Refining and Petrochemical Company (WRPC) and Kaduna Refining and Petrochemical Company (KRPC).”
NNPCL is seeking reputable and capable O&M firms to manage these refineries to ensure their reliable operation and contribute to the nation’s fuel supply and energy security. The tender for both refineries will be handled as a single process through three stages: EOI, Technical, and Commercial. This approach aims to optimize procurement costs, manpower management, and the use of Computerized Maintenance Management Software (CMMS) and Warehousing Management Systems (WMS).
The scope of the O&M contract will include both long-term and short-term production and operations planning and execution. To be eligible for bidding, companies must demonstrate a minimum turnover of $2 billion USD for each of the financial years 2020, 2021, 2022, and 2023.
This move comes amidst ongoing debates about the effectiveness of the refineries, which have seen substantial investments without achieving optimal functionality. The Kaduna refinery has a production capacity of 110,000 barrels per day, while the Warri refinery can process 125,000 barrels per day.
