The Nigerian National Petroleum Company Limited (NNPC) is seeking strategic partners to operate and maintain the Warri Refining and Petrochemical Company (WRPC) and Kaduna Refining and Petrochemical Company (KRPC). To ensure the refineries’ reliability and sustainability, NNPC has established stringent financial requirements for potential bidders.
In the Expression of Interest (EOI) document released by NNPC, only firms with a minimum average annual turnover of $2 billion and a debt-free status will be eligible to participate in the bidding process. NNPC emphasizes the need for bidders to possess the technical expertise and financial strength necessary to ensure the refineries’ reliability and sustainability.
Financial requirements for bidders include:
- Minimum average annual turnover of $2 billion
- Debt-free status
- Audited accounts for the past four years
- Latest credit ratings
Beyond financial capacity, NNPC is prioritizing technical expertise. Bidders must demonstrate experience in refinery operations and maintenance, particularly in areas such as Fluid Catalytic Cracking units, instrumentation and controls, and turnaround maintenance. Successful bidders should have a track record of managing similar facilities for at least two decades.
The scope of work for the Operations and Maintenance (O&M) contract includes:
- Long-term and short-term production planning
- Maintenance execution
- Process and controls engineering
- Environmental management
- Management team capabilities and workforce size
NNPC is committed to aligning refinery operations with Nigeria’s local content laws. Bidders must demonstrate a commitment to local content, including staff training and development and engagement with local communities.
Financial liabilities and crude oil supply are additional considerations:
- Bidders must have no existing loans or financial liabilities.
- NNPC will guarantee crude oil supply to the refineries after the takeover by private firms.
The deadline for submitting Expressions of Interest is September 12, 2024. The tender process will consist of three stages: Expression of Interest, Technical, and Commercial.
The Warri Refining and Petrochemical Company (WRPC) and Kaduna Refining and Petrochemical Company (KRPC) are both major oil refining and petrochemical companies in Nigeria. Both refineries have faced significant challenges, including operational breakdowns, inadequate maintenance, and reliance on imported crude oil.
