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Transparency: 278 companies join NNPC’s open bid for purchase of crude oil
Minister of State for Petroleum, Dr. Emmanuel Kachikwu Ibe

Transparency: 278 companies join NNPC’s open bid for purchase of crude oil

In its continued bid to show its has now inculcated the culture of change and transparency, The Nigerian National Petroleum Corporation (NNPC) on Tuesday at its Abuja Headquarters conducted the public opening of bids tendered by 278 Nigerian and international companies for the purchase of Nigeria’s crude oil grade.

Apart from Italian oil giant Eni and India’s flagship national oil company, Indian Oil Corporation Limited, indigenous oil firms including Forte Oil, Eterna Plc, Niger Delta Petroleum Resources Ltd and MRS also put in bids for the 16 available slots that are up for grabs.

NNPC had last month published tender notice for competent oil companies to bid for term contract for the sale and purchase of Nigerian crude oil grades.

The successful companies after the entire process are expected to lift about 900, 000 barrels per day of Nigeria’s crude oil within a 12 months period, starting from January 2016.NNPC had in September announced it will cut from 43 to 16, the number of beneficiaries of the term contract for the proposed 2015/2016.

The tenders for the 2015/2016 term contract, it was learnt, has been carefully structured to weed out “briefcase companies’’ and rent seekers.

According to NNPC’s GMD, Dr. Emmanuel Kachikwu Ibe, the open bid process was another example that the corporation is imbibing a new culture that will make it more efficient.

He noted that the NNPC has too much work on its hands to be bothered with issues such as crude oil sales so it wants to get very competent hands who would not have to pay third parties or bribe any official to get the job done.

NNPC’s Group General Manager, Crude Oil Marketing Division, Mr Mele Kyari, noted that the public opening of the bid was designed to ensure the optimisation of value of the nation’s crude.

He said the aim was also to ensure the emergence of credible and reliable customers to the purchase of Nigerian crude oil.

Kyari said that the process would also ensure that the ultimate end users of the crude had access to it.

He also explained that the exercise would also ensure that Nigerian crude did not become a major contributor to the instability in the price of oil in the international market.

He said that the absence of credible buyers of the nation’s crude had resulted in a situation where people who bought crude cargoes knew little or nothing on how to utilise the crude. This, according to him, has resulted in the lower value of the crude in the market.

It would be recalled that weeks back the NNPC had also conducted an open public bidding for 101 Nigerian and multi-national companies for the award of Offshore Processing Arrangements (OPA) and a public bidding for 91 companies for the award of NNPC’s Coastal, Bunkering Vessels Service.

 

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