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NNPC looking for private firms to operate Warri, Kaduna refineries

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The Nigerian National Petroleum Company (NNPC) Limited says it is seeking to engage reputable and credible operations and maintenance (O&M) companies to operate and maintain two refineries. 

The refineries are the Warri Refining and Petrochemical Company (WRPC) and the Kaduna Refining and Petrochemical Company (KRPC).

NNPCL, in a statement on its official X handle on Friday, said the decision is to ensure reliability and sustainability to meet the nation’s fuel supply and energy security obligations.

“The O&M tender for WRPC and KRPC will be treated as a single tender through a three stage tender process (expression of interest, EOI, technical and commercial) leveraging on all the possible opportunity costs associated with procurement of consumables, personnel/manpower management, utilisation of computerised maintenance management software (CMMS), warehousing management system (WMS) etc,” the statement reads.

According to NNPC, the O&M contract scope of work will cover, but not be limited to the following: long-term and short-term production and operations planning, production and operations execution, monitoring, reporting and optimisation of operation, maintenance planning (short-term), maintenance execution, and reliability and inspection.

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Others include process and controls engineering, quality control, quality assurance and laboratory, specialist engineering, health and safety, environmental management, turnaround maintenance planning and execution, minor projects, non-contractor management, subcontractor management, inventory, and warehouse management.

The oil firm said for any bidder to be eligible for the tender exercise, they are required to “fill out and submit mandatory details through this link http://forms.office.com/r/kjSyVwz3Eg on or before 12 midnight Thursday 12th September 2024”.

Individual bidders would be duly notified on their registration in NNPC LTD/NipeX tender process portal,” the NNPC said.

“Thereafter the bidder would have access to make their submission on the NNPC LTD/NipeX tender process portal.

“All submission bids should be titled; EOI for the provision of operations and Maintenance (O&M) services for NNPC Limited Refining: Warri Refining and Petrochemical company (WRPC) and Kaduna Refining and Petrochemical Company (KRPC)”.

FINANCIAL REQUIREMENTS 

The oil company said applicants must present audited accounts for the past four years (2020 to 2023) that include balance sheet, income and cash flow statements.

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“Provide evidence of your company’s latest credit ratings and the name of the rating agency,” the energy firm said.

“Demonstration of a minimum average annual turnover of at least $2 billion USD for the financial years ending: 2020, 2021, 2022, & 2023 respectively.”

TENDER SUBMISSION AND CLOSING DATE

The NNPC also said documents should be submitted online through the electronic NIPEX tender portal on or before 12 pm on September 26.

“The EOIs shall be opened virtually, following the deadline for EOIs submission at 12noon Thursday 10th October 2024 using the Microsoft Teams,” the oil firm said.

“Bidders who have submitted their bids and external observers shall be invited to attend the virtual live stream bid opening session.”

In the event of any unscheduled holiday on the bid submission date, the NNPC said the new deadline for submission of bids will be on the next working day.

Also, the EOI closing date and time will be extended to the next working day and time, the oil company said.

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BREAKING: Dangote refinery sold petrol at N898 per litre, says NNPC

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The Nigerian National Petroleum Company (NNPC) Limited says premium motor spirit (PMS), also known as petrol, was bought from Dangote Petroleum Refinery at N898 per litre.

Olufemi Soneye, the chief corporate communications officer of NNPC, confirmed the price on Sunday.

More to follow…

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Dangote refinery petrol supply to NNPC will eliminate queues – Otedola

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Femi Otedola, the owner of Zenon Petroleum, has commended the Dangote Petroleum Refinery for successfully supplying premium motor spirit (PMS), also known as petrol, to the Nigerian National Petroleum Corporation (NNPC) Limited.

Otedola, in a post on X on Sunday, said the supply of PMS to NNPC will end queues at retail stations.

“Kudos to President Tinubu for making this a reality!,” he said.

“Fuel queues are now a thing of the past as Dangote Refinery starts loading PMS today Sunday 15 September 2024.”

Earlier today, Dangote refinery said trucks owned by NNPC have commenced loading petrol at its gantry.

The development followed NNPC’s deployment of trucks to the petrol-loading gantry of Dangote refinery on Saturday.

On September 14, the Federal Government said Dangote refinery will sell petrol to only NNPC, adding that interested marketers would have to buy the product from the national oil firm.

However, the government said Dangote refinery can sell diesel to any off-taker.

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Dangote refinery commenced petrol production on September 3.

On the same day, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the Dangote refinery is expected to supply 25 million litres of petrol daily in September and will subsequently increase the volume to 30 million litres daily from October.

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Oil marketers not patronising us… only 3% buy our products – Dangote refinery

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The Dangote Petroleum Refinery says only 3 percent of local oil marketers are purchasing refined petroleum products.

Devakumar Edwin, vice-president of Dangote Industries Limited (DIL), spoke during an X space organised by Nairametrics.

He said due to the low patronage, the refinery is forced to export 97 percent of its refined products.

“The conglomerate of all the importers are refusing to buy from us. It is very strange that after putting up the refinery to supply the products locally, I have to export every diesel and jet fuel because they do not want to buy from us,” Edwin said.

“We started selling the diesel, we fixed the price, and it was lower than the prevailing market price. Then, we brought the price further down and they (marketers) wrote to the president complaining.”

WHY OIL MARKETERS WROTE TO TINUBU’

Edwin said the marketers complained that the refinery reduced the price of diesel and so “they said they do not want to buy from us”.

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Specifically, he said the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) wrote to President Bola Tinubu that the price cut affected their business “due to the large inventory of imported AGO”.

“I’m selling 2 percent to 3 percent to small traders who are willing to buy, while the rest 95 to 97% I’m forced to export,” he said.

The vice-president said the refinery may also be forced to export its petrol “if they are not willing to buy”.

“But to be very frank and straightforward, the Nigerian National Petroleum Company (NNPC) has come forward,” Edwin said.

“They have been discussing. Athough the discussion has been going on for almost three weeks and it is not yet concluded, they are working to agree with us on the quantity of crude they can sell and they said they will monitor the products.

“They are going to have a team of 10 people sitting in the refinery. They will see the crude which we are going to receive, ensuring that everything is coming into the refinery, and they would watch whether we are producing and processing everything and then, they would watch whether we are giving back all the products.”

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Dangote refinery commenced petrol production on September 3.

On the same day, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the Dangote refinery is expected to supply 25 million litres of petrol daily in September and will subsequently increase this amount to 30 million litres daily from October.

On September 7, the NNPC denied reports that it intends to become Dangote refinery’s sole distributor following speculations that the national oil firm had planned to do so.

The company also said there is no guarantee that domestic refining would lead to lower prices compared to global parity pricing.

NNPC said Dangote refinery and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products.

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