101 firms jos­tle for fresh NNPC off­shore deals

Daily Trust - - FRONT PAGE - By Daniel Adugbo

The Nige­rian Na­tional Petroleum Cor­po­ra­tion (NNPC) yesterday con­ducted the public open­ing of bids ten­dered by a to­tal of 101 Nige­rian and multi­na­tional com­pa­nies com­pet­ing for the award of Off­shore Pro­cess­ing Ar­range­ments (OPA).

By the OPA deal, the NNPC un­der­takes to al­lo­cate a ded­i­cated vol­ume of crude oil for re­fin­ing at off­shore lo­ca­tions in ex­change for petroleum prod­ucts at prea­greed yield pat­tern.

The cor­po­ra­tion had, in Au­gust, ter­mi­nated the OPA it en­tered into in Jan­uary with Duke Oil Com­pany Inc., Ai­teo Energy Re­sources Lim­ited and Sa­hara Energy Re­sources (Nig) Ltd be­cause they were “skewed in favour of the com­pa­nies”.

Un­der the pre­vi­ous agree­ment, the NNPC al­lo­cated a to­tal of 210,000 bar­rels of crude oil per day for re­fin­ing at off­shore lo­ca­tions in ex­change for petroleum prod­ucts at prea­greed yield pat­tern.

Con­se­quently, the Cor­po­ra­tion, in Septem­ber, an­nounced an in­terim OPA with three of its Joint Ven­ture com­pa­nies - Duke Oil, Carlson and Napoil - which it said would lapse with the ad­vent of the fresh OPA con­tracts.

Yesterday’s ex­er­cise, which was broad­cast live on na­tional tele­vi­sion and con­ducted in the full glare of rep­re­sen­ta­tives of the Nige­rian Ex­trac­tive In­dus­try Trans­parency Ini­tia­tive, (NEITI), ex­ec­u­tives of the bid­ding com­pa­nies and other cru­cial oil and gas in­dus­try stake­hold­ers was a swift de­par­ture from the pre­vi­ous OPA award ex­er­cises which were con­ducted with­out public par­tic­i­pa­tion.

Group Man­ag­ing Di­rec­tor of the NNPC, Dr. Ibe Kachikwu, said at the flag-off of the ex­er­cise that the Cor­po­ra­tion has taken the pain to make the process lead­ing up to the award open to public scru­tiny to demon­strate be­fore all mem­bers of the public that NNPC had noth­ing to hide.

“At the end of this ex­er­cise, we must be able to en­gage com­pa­nies that are known to ev­ery­body and not shrouded in mys­ter­ies. We must have terms that are very trans­par­ent and com­par­a­tive to terms any­where else in the world where OPAs are be­ing done,” Kachikwu said.

He said that while the Cor­po­ra­tion was work­ing as­sid­u­ously to en­sure that the re­finer­ies were re-streamed to op­ti­mal lev­els, the NNPC would, in the in­terim, max­i­mize the OPAs in such a way as to se­cure the best deals pos­si­ble for Nige­ria.

“I hope that we should be able to build in fu­tur­is­tic growth pat­terns in the new deal. We should be able to come up with com­pa­nies that have solid in­vest­ments in Nige­ria be­cause this is not just a trad­ing is­sue,” he added.

A deep­wa­ter oil rig

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