NNPC to Privatize Warri, Kaduna Refineries, Hands Over to Private Operators

In a strategic move aimed at enhancing the efficiency and productivity of Nigeria’s oil refining sector, the Nigerian National Petroleum Company Limited (NNPC) has announced plans to hand over the operations and maintenance of two of its key refineries to private operators. The Warri Refining and Petrochemical Company (WRPC) and the Kaduna Refining and Petrochemical Company (KRPC) will soon be managed by reputable and credible Operations and Maintenance (O&M) companies.

This decision marks a significant shift in NNPC’s approach to refinery management. The Warri and Kaduna refineries, historically managed by NNPC, have faced numerous challenges, including underutilization, technical inefficiencies, and financial losses. By engaging specialized private firms, NNPC aims to revitalize these facilities, ensuring they operate at optimal capacity and meet both domestic and international demand for refined petroleum products.

The move aligns with broader government efforts to reform the country’s oil and gas sector, which has been plagued by inefficiencies and corruption. By bringing in private operators, NNPC seeks to leverage their expertise, technology, and best practices to transform the refineries into profitable and reliable assets.

As NNPC embarks on this transition, the selection process for O&M companies will focus on firms with a proven track record in the global oil and gas industry. This approach underscores NNPC’s commitment to transparency and excellence in the management of Nigeria’s critical energy infrastructure.

The handover of the Warri and Kaduna refineries is expected to be a turning point in Nigeria’s refining capacity, reducing the country’s dependency on imported refined products and boosting local production.