NNPC cuts crude oil lifters from 43 to 16

The Nigerian National Petroleum Corporation (NNPC) says it has initiated transparent measures to execute the 2015 and 2016 annual award of crude oil term contract to oil companies operating in the country.

And one of those measures is the reduction of the number of off-takers for the proposed 2015 and 2016 contract term, which would emerge after a planned rigorous competitive bid, from 43 to 16.

According to Ohi Alegbe, group general manager, group public affairs division of NNPC, the new measures will help to optimise the marketing of Nigeria’s crude oil and secure new market potentials.

“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,” Alegbe said in a statement.

“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.”

It said that NNPC had also extended invitation for competitive bidding to other oil companies, apart from the earlier listed establishments invited to bid for the proposed Offshore Processing Agreements (OPA).

“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 statement added.

Last year, a total of 43  companies (28 Nigeria and 15 foreign) were awarded NNPC’s contracts authorising them to sell the commodity to both local and international firms.

On Wednesday, NNPC had announced the cancellation of the current contract for delivery of crude oil to the nation’s refineries in Warri, Port Harcourt, and Kaduna, citing “exorbitant cost and inappropriate process of engagement”.

It also terminated the Offshore Processing Agreements (OPA) entered into last January with Duke Oil Company Inc., Aiteo Energy Resources Limited, and Sahara Energy Resources (Nig) Ltd.