NNPC Seeks Firms To Operate, Maintain Nigeria’s Refineries

The Nigerian National Petroleum Corporation (NNPC) has invited
applications from companies qualified to operate and maintain three
state-run oil refineries.

NNPC said Friday in a publication on its Tweeter handle that it
was seeking to engage reputable and credible operations and
maintenance companies to operate and maintain the Port Harcourt,
Warri and Kaduna Refineries to ensure reliability and
sustainability to meet the nation’s fuel supply obligation.

The invitation for Expressions of Interest is coming nearly a
month after the NNPC signed a contract with Italy’s Maire Tecnimont
for the rehabilitation of the Port Harcourt Refinery.

The $1.5 billion contract was signed by the managing director of
the Port Harcourt Refinery, Ahmed Dikko, and the vice president of
Tecnimont, Sub-Saharan Africa, Davide Pellizola.

The signing indicated the contract for the repair of the 210,000
barrels per-day-refinery had taken off. The Federal Executive
Council approved the contract in March, a decision many analysts
criticised as wasteful.

Nigeria has four refineries owned by the government, but imports
its refined petroleum products. The approval for the Port Harcourt
Refinery was welcomed with mixed reactions as the country in the
past spent billions of dollars on refinery maintenance with no
success.

The NNPC has said the country does not have the required funds
to build a new refinery. Mele Kyari, NNPC group managing director,
said in April that building a new refinery would cost the country
about $10 billion which is far beyond the $1.5 billion earmarked
for the rehabilitation of Port Harcourt refinery.

He also said the country would have to live with importation of
petroleum product, especially petrol, for another four years if the
country ventures into building a new refinery.

In March, the Minister of State for Petroleum, Timipre Sylva,
said the rehabilitation will be done in three phases of 18, 24 and
44 months.

He said the funding would be from many components including the
NNPC, Internally Generated Revenue (IGR), budgetary provisions, and
Afreximbank.
The minister also said a maintenance company would also be put in
place to ensure an effective maintenance culture.

In its advertorial Friday, the NNPC said the scope of
responsibilities for successful companies for the three refineries
would cover long term and short term production/operations
planning, production and operations execution, monitoring,
reporting and optimization of operations, and more.

The Nigerian National Petroleum Corporation (NNPC) has invited
applications from companies qualified to operate and maintain three
state-run oil refineries.

NNPC said Friday in a publication on its Tweeter handle that it
was seeking to engage reputable and credible operations and
maintenance companies to operate and maintain the Port Harcourt,
Warri and Kaduna Refineries to ensure reliability and
sustainability to meet the nation’s fuel supply obligation.

The invitation for Expressions of Interest is coming nearly a
month after the NNPC signed a contract with Italy’s Maire Tecnimont
for the rehabilitation of the Port Harcourt Refinery.

The $1.5 billion contract was signed by the managing director of
the Port Harcourt Refinery, Ahmed Dikko, and the vice president of
Tecnimont, Sub-Saharan Africa, Davide Pellizola.

The signing indicated the contract for the repair of the 210,000
barrels per-day-refinery had taken off. The Federal Executive
Council approved the contract in March, a decision many analysts
criticised as wasteful.

Nigeria has four refineries owned by the government, but imports
its refined petroleum products. The approval for the Port Harcourt
Refinery was welcomed with mixed reactions as the country in the
past spent billions of dollars on refinery maintenance with no
success.

The NNPC has said the country does not have the required funds
to build a new refinery. Mele Kyari, NNPC group managing director,
said in April that building a new refinery would cost the country
about $10 billion which is far beyond the $1.5 billion earmarked
for the rehabilitation of Port Harcourt refinery.

He also said the country would have to live with importation of
petroleum product, especially petrol, for another four years if the
country ventures into building a new refinery.

In March, the Minister of State for Petroleum, Timipre Sylva,
said the rehabilitation will be done in three phases of 18, 24 and
44 months.

He said the funding would be from many components including the
NNPC, Internally Generated Revenue (IGR), budgetary provisions, and
Afreximbank.
The minister also said a maintenance company would also be put in
place to ensure an effective maintenance culture.

In its advertorial Friday, the NNPC said the scope of
responsibilities for successful companies for the three refineries
would cover long term and short term production/operations
planning, production and operations execution, monitoring,
reporting and optimization of operations, and more.