In a move to boost efficiency and productivity, the Nigerian National Petroleum Company Limited (NNPCL) is seeking to transfer the operations of the Port Harcourt Refinery to a private entity.
This was disclosed in an expression of interest notice issued by NNPCL on its website and shared on its X page yesterday.
The Port Harcourt Refinery is one of the four refineries owned by NNPCL, with a refining capacity of 210,000 barrels per day (bpd).
By December, 2023, NNPCL announced the successful completion of the Area 5 section of the refinery, including the mechanical completion and flare start-up.
Also, the CEO of NNPCL, Mele Kyari, stated that the second phase of repair works of the refinery would be completed by the fourth quarter of 2024.
NNPCL stated that it was looking for “reputable and credible Operations and Maintenance (O&M) companies to operate and maintain one of its refineries, Port Harcourt Refining Company (PHRC), to ensure reliability and sustainability towards meeting the nation’s fuel supply and energy security obligations.”
The contract for the operation of the refinery will cover a wide range of refinery business processes, including crude oil receipt and storage, refining, product storage and distribution and maintenance.
Interested companies must have a minimum average annual turnover of at least $2bn for the fiscal years ending in 2019, 2020, 2021 and 2022. They must also have a proven track record of operating and maintaining refineries of similar size and complexity.
Meanwhile, experts have opined that NNPCL’s decision to hand over the operation of the Port Harcourt Refinery to private entities is a significant step in the ongoing reform of the Nigerian oil and gas sector. The move is expected to attract much-needed investment into the refinery and improve its operational efficiency.