NNPCL Announces Plans to Hand Over Warri, Kaduna Refineries to Private Firms

The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to transfer the operations of its Warri and Kaduna refineries to private operators. This development was revealed through an official advertisement on the company’s social media account.

According to the advertisement, NNPCL is seeking reputable and experienced private companies to provide Operations and Maintenance (O&M) services for both refineries. The selected companies will be responsible for ensuring the refineries’ reliability and sustainability, critical to meeting Nigeria’s fuel supply and energy security needs.

The NNPCL outlined specific requirements for interested bidders, emphasizing experience in refinery operations, particularly in product tank/storage facilities maintenance, and commissioning/start-up processes. Applicants must demonstrate a minimum turnover of $2 billion USD for the financial years ending 2020, 2021, 2022, and 2023.

This move comes in the wake of ongoing debates regarding the effectiveness of Nigeria’s state-owned refineries, which have seen significant investments but continue to operate below capacity. The Kaduna refinery has a production capacity of 110,000 barrels per day, while the Warri refinery can produce 125,000 barrels daily.

The tender process will involve a three-stage evaluation: Expression of Interest (EOI), technical, and commercial assessments. The successful company will be tasked with long-term and short-term production planning, execution, and overall refinery operations management.