NNPC Plans to hand over Warri And Kaduna refineries to private operators

The NNPC’s objective is to ensure the reliable and sustainable operation of these refineries to meet the nation’s fuel supply needs and enhance energy security.

The Nigerian National Petroleum Company (NNPC) Limited has unveiled plans to collaborate with private firms for the management and maintenance of its refineries in Kaduna and Warri. This initiative is part of a broader effort to bolster the country’s petrol supply and improve energy security.

The NNPC made the announcement on Thursday through a circular shared on its official X account, signaling its intention to engage reputable Operations & Maintenance (O&M) companies to oversee the Warri Refining and Petrochemical Company (WRPC) and the Kaduna Refining and Petrochemical Company (KRPC). The objective is to ensure the reliable and sustainable operation of these refineries to meet the nation’s fuel supply needs and enhance energy security.

The process for selecting these companies will be conducted in three stages: Expression of Interest (EOI), Technical Evaluation, and Commercial Evaluation.

According to the circular, the selection process will emphasize maximizing cost-saving opportunities, particularly in the procurement of consumables, personnel management, and the use of advanced technologies like Computerized Maintenance Management Software (CMMS) and Warehousing Management System (WMS).

Eligibility Requirements for Bidding Firms:

• Proof of company registration and incorporation from the relevant authority.
• A certified true copy of the Certificate of Incorporation issued by the Corporate Affairs Commission (CAC) within the last 12 months, along with the CAC’s latest annual return.
• Statutory documents detailing the company’s ownership structure, including the names of major shareholders and their percentage holdings.
• A comprehensive company profile accompanied by a signed letter of application on the company’s official letterhead, with contact information and a verified office address.
• 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.
• Financial statements for the last three years (2021, 2022, and 2023).
• Assurance of the company’s capability to undertake and complete the contract within the specified timeline.

The Warri Refinery, located in Warri, Delta State, was commissioned in 1978 as 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 facility includes a petrochemical plant, commissioned in 1988, with production capacities of 13,000 MTA of polypropylene and 18,000 MTA of carbon black. The Warri refinery plays a crucial role in supplying petroleum products to the southern and southwestern regions of Nigeria.

Meanwhile, the Kaduna Refinery, commissioned in 1980, was established to meet the petroleum needs of Northern Nigeria, with an initial capacity of 50,000 bpd. In 1983, the refinery’s capacity was doubled to 100,000 bpd with the addition of a second 50,000 bpd crude train dedicated to producing lubricating oils. Further expansions in 1986 increased the first crude train’s capacity to 60,000 bpd, bringing the refinery’s current nameplate capacity to 110,000 bpd.