Oredola Adeola
The Special Adviser on Media and Public Communications to President Bola Tinubu, Sunday Dare, has confirmed the government’s plan to fully privatise Nigeria’s oil refineries.
Dare disclosed this information through a post on his official X handle, highlighting key points from the Tinubu Reforms Team (TRT), which tracks and showcases the impact of President Tinubu’s reforms in the oil sector.
In his statement, Dare said, “The full privatisation of the Port Harcourt, Warri, and Kaduna refining in the works.”
The TRT, according to the tracker, aims to underscore the positive outcomes of the ongoing reforms, as the government continues to implement policies to enhance the nation’s energy infrastructure and economic growth.
Meanwhile Olufemi Soneye NNPCL’s spokesperson informed Punch Newspaper that the delay in the delivery of Port Harcourt refinery was due to unforeseen risks and challenges associated with rehabilitating the brownfield project.
He however confirmed that the issues have now been resolved without providing assurance that the refinery can be delivered in 2024.
Advisors Reports recalled that a circular credited to the NNPC in August has earlier given credence to the federal government’s plan to privatise Nigeria’s oil refineries.
The document outlined steps being taken to engage private operators in the management of key refineries.
According to the circular, NNPC Ltd. is an integrated oil and gas company involved in petroleum and gas exploration, refining, petrochemicals, transportation, storage, and marketing.
The circular stated, “NNPC Ltd is seeking to engage reputable and credible Operations & 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). This is aimed at ensuring reliability and sustainability to meet the nation’s fuel supply and energy security obligations.”
The circular further indicated that the tender process for the refineries will be handled as a single tender, conducted in three stages—Expression of Interest (EOI), Technical, and Commercial.
It also revealed that the process will take advantage of all possible cost-saving opportunities related to the procurement of consumables, personnel management, and the use of systems such as Computerized Maintenance Management Software (CMMS) and Warehousing Management System (WMS).
The nation’s four major refineries have a total combined capacity of 445,000 bpd.
- Port Harcourt Refinery has a combined capacity of 210,000 barrels per day (bpd).
- Warri Refinery has a capacity of 125,000 bpd.
- Kaduna Refinery, with a capacity of 110,000 bpd.
The NNPC awarded a $741 million contract to Daewoo Engineering and Construction Company for the rehabilitation of the Kaduna Refinery, which has a capacity of 110,000 barrels per day (bpd).
Daewoo is expected to restore production to at least 60% capacity by the end of 2024.
Additionally, the NNPC allocated $1.48 billion for the rehabilitation of both the Warri and Kaduna refineries.
The Warri Refinery, with a capacity of 125,000 bpd, is also undergoing repairs under a separate contract with Saipem.
Both projects are structured in three phases, spanning timelines of 21, 23, and 33 months.
However, the completion dates remain uncertain, prompting calls for accountability regarding the contracts awarded to both Daewoo and Saipem amid concerns over transparency and efficiency in the execution of these significant projects.
