The Nigerian National Petroleum Company Limited (NNPCL) has announced its intention to transfer the operations of its Warri and Kaduna refineries to private companies. This significant move was disclosed in an advertisement posted on the company’s official X (formerly Twitter) account.
According to the advertisement, NNPCL is seeking to engage reputable private companies for the “Provision of Operations and Maintenance (O&M) Services” for the Warri Refining and Petrochemical Company (WRPC) and the Kaduna Refining and Petrochemical Company (KRPC). The advertisement emphasized that the private companies must have substantial experience in maintaining product tanks and storage facilities, as well as expertise in commissioning, start-up, post-commissioning, and turnaround of refinery projects within the last two decades.
NNPCL’s statement 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).”
The national oil company highlighted its goal to ensure the reliability and sustainability of Nigeria’s fuel supply and energy security. The tender process will be conducted in three stages: Expression of Interest (EOI), Technical, and Commercial. The process will leverage various strategies, including cost-effective procurement of consumables, effective personnel and manpower management, and the utilization of advanced Computerized Maintenance Management Software (CMMS) and Warehousing Management Systems (WMS).
The scope of work outlined in the O&M contract includes both long-term and short-term production and operations planning, as well as execution strategies to optimize refinery performance. Interested companies must also demonstrate a financial turnover of at least $2 billion USD for each of the financial years from 2020 to 2023.
This move comes amid longstanding controversies surrounding the operational efficiency of Nigeria’s refineries, which have faced issues despite significant financial investments. The Warri refinery has a production capacity of 125,000 barrels per day, while the Kaduna refinery can produce up to 110,000 barrels per day. Despite these capacities, the refineries have struggled with operational setbacks, prompting the government to explore private sector involvement to enhance performance.
By inviting private companies to manage these facilities, NNPCL aims to revitalize the refineries and address Nigeria’s ongoing fuel supply challenges. The success of this initiative could mark a turning point in the country’s efforts to achieve greater self-sufficiency in fuel production and distribution.