Saturday, January 22, 2022
Banner Top

The Nigerian National Petroleum Corporation (NNPC) disproves contract terms with fifty international and indigenous firms purportedly shortlisted. It was gathered previously that fifty companies including Oando, MRS, Total, and others, were awarded the contract to lift Nigeria’s crude oil.

To refute this claim NNPC’s spokesperson, Ndu Ughamadu, said the list was “not official”.

The companies that were mentioned before the corporation disowned the claim were expected to join NNPC to lift about 950,000 barrels per day (bpd) within the two-year period.

Some of the contracts were said to cover deals struck by the NNPC with various governments, including China, India, South Africa, Turkey, Ivory Coast, Ghana, Liberia, Niger, Sierra Leone, Senegal, Togo, and Malawi.

However, according to Ughamadu, NNPC is yet to release the list, saying that the official list of winners is “not yet ready”. The authentic list will be released soon and the real list is awaited. The NNPC publicist noted that winners for bids which was in January would be selected as licensed off-takers to trade on Nigeria’s equity crude for a 24 months period.

On his own part, during the exercise, the NNPC Group Managing Director, Maikanti Baru, made it known to prospective bidders that the exercise was to promote greater participation of Nigerian enterprises while preserving world-class standards. While Group General Manager, Crude Oil Marketing Division, Mele Kyari, also listed some of the conditions potential off-takers were expected to meet under the 2018/2019 crude term contract. These include possessing a minimum annual turnover of $500 million for 2016 and net worth of $250 million for 2016, apart from having the 2015 & 2016 audited accounts.

Kyari disclosed that prospective off-takers was expected to equally demonstrate the capacity to establish an irrevocable Letter of Credit (LC) subject to contract terms, adding that successful bidders would join in lifting over 700,000 barrels per day of crude oil by NNPC on Free on Board, FOB basis.

It was also revealed that other conditions for lifting were on the marketability of Nigeria’s crude oil in the international market, particularly in Europe, which has remained the major market for Nigeria’s 26 crude oil grades.

From the foregoing no one can actually tell when the crude oil contract final list will be out and those companies qualified to lift crude.


Leave a Comment

Brent Crude Oil

WTI Crude Oil


img advertisement


img advertisement