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Improved petrol supply: NNPCL seeks private companies to operate Warri, Kaduna refineries

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Intending private operators are to submit their applications on or before September 12 for the Warri and Kaduna refineriesNNPCL wants private operators to manage its Warri and Kaduna refineries to ensure improved petrol supply


  • The Nigerian National Petroleum Company Limited (NNPCL) wants to engage private companies to manage its Warri and Kaduna refineries
  • The company says the decision is to improve petrol supply
  • Intending bidders are to submit applications on or before September 12 and are required to present audited financial accounts in the last four years

 

The Nigerian National Petroleum Company Limited (NNPCL) says it wants to engage private companies that will oversee the operation and maintenance of its Warri and Kaduna refineries.

In a circular released on Thursday, August 29, through its official X account, NNPCL said the decision is to ensure reliability, sustainability and improved supply of petrol and enhance energy security.

It said the tender process of selecting the companies is in three stages: expression of interest (EOI), technical evaluation and commercial evaluation.

According to the circular, the tender process will adopt all possible cost-saving opportunities related to consumable procurement, personnel management and the use of systems such as Computerised Maintenance Management Software (CMMS) and Warehousing Management Systems (WMS).

It said, “The Nigerian National Petroleum Company (NNPC) Limited is an integrated oil and gas company engaged in petroleum/gas exploration, refining and petrochemicals, transportation, storage and marketing.

“NNPC Ltd is seeking to engage reputable and credible Operations and Maintenance (O&M) companies to operate and maintain two of its refineries, Warri Refining and Petrochemical Company (WRPC) and Kaduna Refining and Petrochemical Company (KRPC), to ensure reliability and sustainability to meet the nation’s fuel supply and security obligations.

“The O&M tender for WRPC and KRPC will be treated as a single tender through a three-stage tender process (expression of interest (EOI) technical and commercial) leveraging all the possible opportunity costs associated with procurement of consumables, personnel/manpower management, utilisation of computerised maintenance management software (CMMS), warehousing management system (WMS), etc.”

The company added that all eligible bidders for the tender exercise are required to fill out and submit mandatory details through a link (http://forms.office.com/r/kjSyVwz3Eg) on or before midnight of Thursday, September 12, 2024.

It said, “Individual bidders would be duly notified of their registration in NNPC LTD/NipeX tender process portal.

“Thereafter, the bidder would have access to make their submission on the NNPC LTD/NipeX tender process portal.

“All submission bids should be titled; EOI for the provision of operations and Maintenance (O&M) services for NNPC Limited Refining: Warri Refining and Petrochemical Company (WRPC) and Kaduna Refining and Petrochemical Company (KRPC).”

Recall that the NNPCL similarly called for applications to outsource the operations and maintenance of the Port Harcourt refinery to private firms seven months ago.


Scope of work for intending operators

The NNPCL also stated that the scope of work for operations and maintenance contract will cover: long-term and short-term production and operations planning, production and operations execution, monitoring, reporting and optimisation of operation, maintenance planning (short-term), maintenance execution and reliability and inspection.

Others include process and controls engineering, quality control, quality assurance and laboratory, specialist engineering, health and safety, environmental management, turnaround maintenance planning and execution, minor projects, non-contractor management, subcontractor management, inventory and warehouse management.

Financial obligations from intending operators

According to the NNPCL, intending applicants must present audited financial accounts for the past four years between 2020 and 2023 that include a balance sheet, income and cash flow statements. 

It said, “Provide evidence of your company’s latest credit ratings and the name of the rating agency.

“Demonstration of a minimum average annual turnover of at least $2 billion for the financial years ending: 2020, 2021, 2022 and 2023, respectively.”


Other eligibility requirements for bidding firms

The NNPCL stated that other eligibility requirements for intending bidders are: Proof of company registration and incorporation issued by the relevant governing body; a certified true copy of the Certificate of Incorporation from the Corporate Affairs Commission (CAC) within the last 12 months, along with the CAC’s latest annual return; statutory documents indicating the company’s ownership structure, including names of major shareholders and their percentage holdings.

Others include a detailed company profile and a signed letter of application on the company’s official letterhead, including contact details 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 national companies, or similar documentation for foreign firms; financial statements for the last three years (2021, 2022 and 2023); assurance of the company’s capacity to undertake and complete the contract within the specified timeframe.

NNPC launches new crude oil grade, Utapate, exports first cargo to Spain

Meanwhile, TheRadar reported that the Nigerian National Petroleum Company Limited (NNPC) has announced the introduction of the Utapate crude oil blend, a new crude oil grade, into the international crude oil market. 

Produced from Oil Mining Lease 13, a facility fully operated by NNPC Exploration and Production Limited, Utapate began production in July 2024, with a current output of 28,000 barrels per day. 

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Nchetachi Chukwuajah Admin

Nchetachi Chukwuajah is a multimedia journalist with over five years of experience covering business, economy, climate change, environment, gender and social issues. She has worked as a Television Reporter and Presenter; one of the Nigerian correspondents for Youth Journalism International (YJI), Maine, USA, and a Senior Reporter with the Nigerian Tribune. Nchetachi is skilled in information management and copy editing. She is a Freelance Writer with TheRadar

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