NNPC Gives Conditions for Takeover of Warri, Kaduna Refineries by Private Companies
- The Nigerian National Petroleum Company Limited (NNPCL) has revealed more criteria for firms wishing to maintain and operate its refineries
- The company said successful bidders must be debt-free and show robust financial strength
- It said the companies must have strong technical expertise in maintaining and operating refineries elsewhere
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian National Petroleum Company Limited (NNPC) has set harsh financial conditions for companies applying to operate and maintain the Warri and Kaduna refineries.
The national oil firm disclosed in its Expression of Interest (EOI) document that only companies with a minimum average annual turnover of $2 billion will qualify for the bidding process, stating that the intending firms must be debt-free.
Source: UGC
NNPC set strict conditions for bidding firms
NNPC stated that successful bidders must have the technical know-how and financial muscle to efficiently and effectively manage the refineries and secure a continuous supply of petroleum products to meet Nigeria’s energy needs.
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The document released on the company’s official X handle highlights the eligibility criteria that qualifying companies must meet, with the $2 billion minimum turnover being a crucial requirement.
The company said the requirements show its commitment to attracting financially strong and technically sound companies.
Additionally, NNPC said bidders must show robust financial health, providing audited accounts for the past four years.
Technical capability is a must
Bidding firms must also provide their latest credit ratings to ensure they have sound financial footing and can handle the enormous operational demands of the refineries.
NNPC is also stressing technical expertise as the primary criterion for eligibility as the EOI requires bidders to show detailed information on their experience with refinery operations and maintenance, especially in areas such as Fluid Catalytic Cracking units, instrumentation and controls, and turnaround maintenance.
It disclosed that bidders must provide a track record of managing similar projects, with at least two decades in refinery operations and maintenance.
Other criteria by NNPC
Punch reports that the scope of the Operate and Maintain contract is extensive, covering long-term and short-term production, planning, execution, process and controls engineering.
It must also include expertise in environmental management. Bidders are expected to provide a detailed account of their management team’s capabilities and workforce, especially regarding refining and other energy processes.
The company also listed other requirements that strongly emphasised successful bidders' financial strength.
Legit.ng earlier reported that the company opened the EOI to attract qualified and competent firms to manage and operate Nigeria’s refineries as the NNPC prepares to begin operations at the Port Harcourt refinery.
Oil marketers set a date to end petrol scarcity
Legit.ng previously reported that the national president of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA, Bennet Korie, had expressed hope that Nigerians will heave a sign of relief and achieve complete petroleum availability by September when the Dangote and Port Harcourt refineries begin operations.
Korie disclosed this as he addressed vital challenges affecting the oil and gas industry at a press conference in Abuja on Wednesday, August 28, 2024.
He disclosed that the Dangote Refinery would boost the petrol supply and spur competition. He called for the inclusion of various stakeholders, including NNPCL Trading and Retail.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
