NNPC Slashes Crude Oil Buyers From 43 to 16

Posted by Odinaka on Fri 28th Aug, 2015 - tori.ng

The NNPC has reduced the number of crude oil off-takers for the proposed 2015/2016 term contract from 43 to 16.

In a statement signed by the Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, the Nigerian National Petroleum Corporation (NNPC) has said it had reduced the number of crude oil off-takers for the proposed 2015/2016 term contract from 43 to 16.

It said the move was part of measures to optimise the marketing of the nation’s crude oil and secure new market potential.

"In a novel move to instill transparency and probity in the award of the annual crude oil term contract, the NNPC has mapped out measures to execute the 2015/2016 award of contract to companies for the evacuation of Nigeria’s crude oil equity from the various crude and condensate production arrangements.

In the days ahead, we shall place advertisement for the 2015/2016 term contracts and the publication will run for one month in major national and international print media to ensure effective message penetration. Later, the guidelines for the selection of new off-takers would be published and subsequently a special bid evaluation committee would be constituted to conduct due diligence on successful applicants.

We are throwing the tender process open for competitive bidding by strong industry players with track records of integrity and financial strength to execute the project."

The NNPC also clarified that apart from the earlier listed industry operators whose performance trajectory impressed the management of the corporation to invite them to bid for the proposed Offshore Processing Agreements, “the corporation is extending the invitation for competitive bidding to Forte Oil and Mobil, among others.”

The nation sells its oil through annual term contracts awarded by the NNPC to a list of companies, both local and international and the firms are then eligible to buy crude throughout the year.