NNPC to Hand Over Warri, Kaduna Refineries to Private Firms.
The Nigerian National Petroleum Company Limited has announced its intention to engage reputable operations and maintenance companies for the Warri Refining and Petrochemical Company (WRPC) and the Kaduna Refining and Petrochemical Company (KRPC). This initiative aims to enhance reliability and sustainability in fulfilling the nation’s fuel supply and energy security commitments.
In a notice posted on its website, the NNPC emphasized that this move is crucial for maintaining the operational efficiency of these facilities. The company previously sought private operators for the Port Harcourt refinery in January, but it remains unclear whether that process has been finalized.
On Thursday, the NNPC management shared that the operations and maintenance (O&M) tender for both WRPC and KRPC will be treated as a single tender. This will involve a three-stage process, including an expression of interest, followed by technical and commercial evaluations. The approach aims to leverage all potential opportunity costs related to the procurement of consumables, personnel management, and the use of computerized maintenance management software, among other factors.
The scope of work under the O&M contract will encompass various responsibilities, including both long-term and short-term production and operations planning. Additionally, it will involve the execution of production and operations, as well as the monitoring, reporting, and optimization of these operations.
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Maintenance planning, both short-term and execution, will also be included in the contract’s scope. The NNPC has outlined specific financial requirements for bidders, requesting audited accounts for the past four years (2020-2023), which must include income statements, balance sheets, and cash flow statements.
Furthermore, bidders are required to provide evidence of their company’s most recent credit ratings along with the name of the rating agency. This ensures that only financially stable companies participate in the tender process.
According to the state-owned energy firm, bidders must demonstrate a minimum average annual turnover of at least $2 billion for the financial years ending in 2020, 2021, 2022, and 2023. This requirement is designed to ensure that only capable companies are considered for the contracts.
In related news, the government and producers are taking steps to address the ongoing oil production crisis, while external auditors are set to examine the NNPC’s N2.6 trillion subsidy claim. Meanwhile, petrol deliveries to the Port Harcourt and Warri depots continue, although queues persist.
