The Nigerian National Petroleum Company Limited (NNPC) announced yesterday that it is inviting Operations and Maintenance (O&M) companies to bid for contracts related to the Warri and Kaduna refineries.
According to a public notice on its official X handle, the NNPC detailed the qualifications required for bidding, emphasizing that this move aims to enhance reliability and energy security for Nigeria.
In August 2021, the Federal Executive Council (FEC) approved contracts worth $1.48 billion for the rehabilitation of the Warri and Kaduna refineries.
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The Warri refinery has an installed capacity of 125,000 barrels per day (bpd), while the Kaduna refinery’s capacity is 110,000 bpd. The project was projected to be completed in three phases: 21, 23, and 33 months.
For years, Nigeria has ceased producing crude oil products due to the shutdown of its government-owned refineries. In April 2021, the NNPC had signed a $1.5 billion contract with the Italian company Maire Tecnimont to rehabilitate the Port Harcourt refinery, aiming to restore it to at least 90 percent of its nameplate capacity.
This project was originally set to be completed in three phases: 18, 24, and 44 months. However, no petrol has been produced from any of the refineries to date.
In this new initiative, the NNPC will conduct a single tender through a three-stage process: Expression of Interest (EOI), Technical, and Commercial.
The scope of the contract will include both long-term and short-term production and operations planning, execution, monitoring, reporting, and optimization. It will also cover maintenance planning and execution, process and controls engineering, quality assurance, health and safety, and environmental management.
Winning firms will also be responsible for turnaround maintenance planning, minor projects, non-contractor management, subcontractor management, inventory, and warehouse management. To qualify, bidders must provide audited accounts from 2020 to 2023, including balance sheets and income and cash flow statements.
They must also present recent credit ratings, demonstrate a minimum average annual turnover of $2 billion for the financial years ending 2020 through 2023, and submit their documents through the electronic NIPEX tender portal by noon on October 10.
“NNPC Ltd is seeking to engage reputable and credible 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 energy security obligations,” the notice added.
Additionally, bidders must submit an affidavit disclosing any affiliations with NNPC committees, directors, or shareholders, and confirm that no director has been convicted of fraud or financial misconduct. They must also confirm they have no existing loans or financial liabilities with banks or other institutions.
NNPC has stated that it will not engage in any communication with bidders from the date of the advertisement.
Besides the Port Harcourt, Warri, and Kaduna refineries, the Dangote refinery is expected to commence petrol refining in September, aiming to increase Nigeria’s total refining capacity to over 1 million bpd. These facilities are anticipated to supply products to both the nation and the West African region.
