NNPC Finalises Plans to Hand Over Warri, Kaduna Refineries to Private Sector

The Nigerian National Petroleum Company (NNPC) Limited has unveiled plans to collaborate with private sector firms for the management and maintenance of its Kaduna and Warri refineries.

This strategic move is designed to bolster the country’s petrol supply and enhance energy security.

EKO HOT BLOG reports that the announcement was made via a circular posted on NNPC’s official X account on Thursday.

NNPC is inviting reputable and experienced Operations & Maintenance (O&M) companies to take charge of the Warri Refining and Petrochemical Company (WRPC) and the Kaduna Refining and Petrochemical Company (KRPC).

The partnership aims to ensure the refineries operate reliably and sustainably, thereby fulfilling Nigeria’s fuel supply and energy security commitments.

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The selection process for these O&M companies will involve three stages: Expression of Interest (EOI), Technical Evaluation, and Commercial Evaluation.

The circular emphasised that the evaluation will prioritise cost-saving measures in areas such as consumable procurement, personnel management, and the implementation of advanced systems like Computerized Maintenance Management Software (CMMS) and Warehousing Management System (WMS).

Eligibility Criteria for Bidding Firms:

1. Company Registration: Proof of registration and incorporation issued by the relevant governing authority.
2. Certificate of Incorporation: A certified true copy from the Corporate Affairs Commission (CAC) dated within the last 12 months, along with the latest annual return.
3. Ownership Structure: Statutory documents detailing the company’s ownership, including the names and percentage holdings of major shareholders.
4. Company Profile: A comprehensive profile and a signed application letter on official letterhead, including contact information and a verified office address.
5. Tax Clearance: A valid Tax Clearance Certificate for the past three years (2021, 2022, and 2023) from the Federal Inland Revenue Service for Nigerian companies, or equivalent documentation for foreign firms.
6. Financial Statements: Audited financial statements for the last three years (2021, 2022, and 2023).
7. Capacity Assurance: Evidence of the company’s ability to undertake and complete the contract within the designated timeframe.

Refinery Details:

• Warri Refinery: Located in Warri, Delta State, the refinery was commissioned in 1978. It is a complex conversion refinery with a nameplate distillation capacity of 6,250,000 metric tonnes per annum (MTA), equivalent to 125,000 barrels per day (bpd).
• The complex also includes a petrochemical plant commissioned in 1988, producing 13,000 MTA of polypropylene and 18,000 MTA of carbon black. Strategically positioned, the Warri refinery supplies petroleum products to Nigeria’s southern and southwestern regions.
• Kaduna Refinery: Commissioned in 1980 to serve Northern Nigeria’s petroleum needs, the Kaduna Refinery initially had a capacity of 50,000 bpd.
• In 1983, its capacity was doubled to 100,000 bpd with the addition of a second crude train dedicated to lubricating oil production. Further expansion in 1986 increased the first crude train’s capacity to 60,000 bpd, bringing the refinery’s current nameplate capacity to 110,000 bpd.
  

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NNPC’s initiative to partner with private O&M companies is a significant step towards improving the efficiency and sustainability of Nigeria’s refining sector.

By leveraging private expertise and advanced technologies, NNPC aims to ensure that its refineries continue to meet the nation’s growing energy demands effectively.

For more information on the application process and detailed guidelines, interested companies can refer to the circular posted on NNPC’s official X account or contact NNPC directly.

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