278 firms par­take in NNPC’s open crude oil sales bid­ing

Daily Trust - - FRONT PAGE - By Daniel Adugbo

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.

NNPC GMD, Ibe Kachikwu Swiss crude oil cus­tomers, Gun­vor and Mer­cu­ria. Other global trad­ing com­pa­nies whose bids were opened in­cluded Sene­gal’s So­ci­ete Africaine, Nor­we­gian oil gi­ant Sta­toil, Strate­gic Fuel Fund/ South African Govern­ment Nigermed Petroleum SA and BP Oil In­ter­na­tional among oth­ers.

NNPC had last month pub­lished ten­der no­tice for oil com­pa­nies to bid for the pro­posed 2015/2016 Term Con­tract for the sale and pur­chase of Nige­rian crude oil

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