278 firms partake in NNPC’s open crude oil sales biding
The Nigerian National Petroleum Corporation (NNPC) yesterday opened bids submitted by 278 companies consisting largely of indigenous oil trading firms vying to secure term contract for the sale and purchase of Nigerian crude oil grades.
The exercise which was conducted for the first time in the full glare of the public was declared open by the Group Managing Director of the NNPC, Dr. Ibe Kachikwu at the NNPC headquarters in Abuja.
Indigenous oil trading companies led by Forte Oil, MRS, Eterna Plc and Niger Delta Petroleum Resources Ltd dominated the list of bidding companies.
Italian oil giant Eni, two of India’s flagship state oil company, Indian Oil Corporation Limited and Hindustan Petroleum Ltd are among international oil trading companies vying to secure the term contract.
Bids were also received from two NNPC’s consistent grades.
Out of the 278 companies that submitted tenders, only 16 companies will be selected for the contract. The Corporation had in September announced it will cut from 43 to 16, the number of beneficiaries of the term contract.
The target, according to the NNPC, is to ensure the contracts are on ground by the 20th of November.
The successful companies are expected to lift Nigerian government crude oil entitlement of around 950,000 barrels per day within a 12 months period, starting from January 2016.
To sell Nigeria’s share of oil produced, the NNPC’s Crude Oil Marketing Division (COMD) normally awards annual “term contracts” to a list of companies that are then eligible to buy crude throughout the year.
The Group General Manager of NNPC’s COMD Mr. Mele Kyari, told newsmen on the sidelines of the bids opening that the awards will be spread across both local and foreign bidders.