Thursday, 5 January 2017

NNPC UNVEILS 39 COMPANIES THAT WILL TRADE NIGERIA’S CRUDE

The Nigeria National Petroleum Cooperation (NNPC), has unveiled names of 39 companies that would lift and trade Nigeria’s oil for the 2017 crude oil term contract. The list containing 39 companies chosen from 224 applicants which participated in an open bid last year released on Tuesday night, includes 18 Nigerian companies, the two NNPC trading companies and other international trading companies.

According to NNPC, in a statement, “the contract would run for one year, effective January 1, 2017, for consecutive 12 circles of crude oil allocation. Listed among the traders are 18 Nigerian companies, 11 international traders, five foreign refiners, three NOCs and two NNPC trading arms. All the contracts are for 32,000 bpd except for Duke Oil Ltd, a subsidiary of NNPC, which shall be for 90,000 bpd.”

At the open bid in November 2016, Dr. Maikanti Baru, Group Managing Director of NNPC, said the number of bidders for the contract dropped from 278 that applied for the contract in 2015 due to the new requirements introduced by the corporation. Baru said at the time that the process, which prioritised refiners and big crude oil lifters, would be concluded in February 2017.

He said: “When we sell this crude oil, the money goes straight to the Central Bank of Nigeria (CBN) account on behalf of the federation. NNPC does not operate any of those accounts. The best inputs from the NNPC is confirmation that the money has been paid but we have no signature rights on this account, contrary to the perception that NNPC is hoarding some money on behalf of the Nigerian people; all the crude oil we sell goes to the Nigerian people. There is nothing that is hidden, it is all open for everybody to see.” (Sun)