The Nigerian National Petroleum Corporation (NNPC), on Sunday morning named BP Oil International/AYM Shafa Ltd; Vitol SA/Calson-Hyson, Trafigura PTE/A.A. Rano Nigeria Ltd., among 15 successful consortiums in its 2019/2020 Direct Sale of Crude Oil and Direct Purchase of Petroleum Products (DSDP) arrangement.
Other winners who completed the 2019/2020 DSDP tender exercise, according to a statement by Ndu Ughamadu, the Corporation’s Group General Manager, Group Public Affairs Division, are: Totsa Total Oil Trading SA/Total Nigeria Plc; Gunvor International BV/AY Maikifi Oil & Gas Co; Cepsa S.A.U/Oando Plc, Mocoh SA/Mocoh Nigeria; Litasco SA/Brittania-U Nigeria/Freepoint Commodities; and MRS Oil & Gas Company. Also on the list are: Sahara Energy Resources; Borno Energy/Eterna Plc/Arkleen Oil & Gas/Amazon Energy; Matrix Energy/Petratlantic Energy/UTM Offshore/Levene Energy Development; Mercuria Energy Trading SA/Barbedos Oil & Gas Services/Rainoil/Petrogas Energy; Asian Oil & Gas PTE/Eyrie Energy/Masters Energy Oil & Gas/Casiva; and Duke Oil Company Incorporated.
The corporation said the winners emerged through a transparent and accountable process, which is in line with its avowed commitment in all its activities as committed by the new GMD, Mallam Mele Kyari.
The tender process, the statement continued, comprised technical and commercial bid submission respectively, evaluation and shortlisting, then commercial negotiations with prequalified companies and engagement of the successful consortia/companies by the NNPC Group.
The contract, Ughammadu noted, “is for one year effective 1st October 2019 to 30th September 2020.
“Under the #DSDP arrangement, the above listed 15 consortia/companies shall over the contract period, off-take crude oil & in return, deliver corresponding petroleum products of equivalent value to NNPC Group, subject to the terms of the agreement”, the statement added.
Ughamadu recalled that in his takeover note on July 8, 2019, the newly appointed, promised to open books of the NNPC Group to public scrutiny, assuring that as a publicly owned company, Nigerians deserve to know about the operations of the corporation.
Also, Kyari had during a town hall meeting with the staff of the corporation launched the management’s policy direction tagged: Transparency, Accountability, Performance & Performance Excellence (TAPE), as part of a commitment to transparency & accountability.
Premium Times had a few months ago reported that 132 companies, including local, regional and international oil companies showed interest in the scheme, whose bid was opened by Dr. Maikanti Baru, Kyari’s predecessor in June.
Each of the 15 winners were expected to demonstrate enough capacity to utilise the 445,000 barrels per day of Nigeria’s crude oil originally meant for domestic refining for the supply of petroleum products.
Baru had explained that the DSDP, the third since 2016, replacing the corruption-prone Offshore Processing Arrangement (OPA) was aimed at maximising the value of Nigeria’s crude oil for the benefit of Nigerians aligns with Muhammadu Buhari administration’s quest for transparency in the oil and gas industry.
The former GMD had explained that between 2016 and March 2019, about 29.5m metric tons (or 39bn litres) of petroleum products have been supplied under the DSDP scheme, representing over 90% of the national requirement of about 55 million litres daily, while reducing demurrage cost by about 84% and savings the nation about $2.2bn within the period.