278 Firms Bid for Nigerian Crude Oil Grades

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Nigerian National Petroleum Corporation (NNPC) Tuesday harvested 278 bids from indigenous and foreign firms angling for the award of the sale and purchase of the 26 Nigerian crude oil grades on offer.

The 26 on offer include: Bonny Light, Forcados Blend, EA Blend, Bonga, Qua Iboe Light, Yoho Blend, Erha and Escravos Light. Others are; Pennington Light, Agbami, Brass Blend, Abo, Oyo, Okono Blend, Amenam Blend, Akpo Condensate and Usan. The rest include: Atam Blend, Okwori, Okoro, Ima, Ukpokiti, Obe, Okwuibome, Ebok and Asaratoru

The process beamed live on Television networks in the country was attended by the bidding companies and officials of the Bureau of Public Procurement, (BPP) Department of Petroleum Resources, (DPR) Nigerian Extractive Industry Transparency Initiative, (NEITI) Nigerian Content Development and Monitoring Board, (NDCMB) as well as members of the civil society attending as independent assessors.

Group Managing Director of the NNPC, Ibe Kachikwu stated that the essence of the public opening of bid is to consolidate on the new promise of setting a new agenda for the Corporation anchored on the tenets of transparency, efficiency in line with President Mohammadu Buhari’s agenda for the oil and gas industry.

“The essence is to ensure that nobody needs to call me personally as Ibe Kachikwu for him to get crude allocation. So, you can imagine the burden it takes off my shoulders. It means a good amount of my time will now go into other relevant areas of operation where the country needs me most, ’’ Kachikwu said.

Throwing more light on the process, Mallam Mele Kyari, Group General Manager, Crude Oil Marketing Division of the NNPC, informed that with the new measure put in place, the incidence of brief case companies and hawking of Nigerian crude would become a thing of the past.

“The idea is to select companies that are credible, capable with track record and would not go to hawk our crude. We are going to get as close as possible to the end users of our crude. What this means is that we are going to eliminate all those transactions that are not necessary,’’ Mallam Kyari stated.

Folashade Odunuga representative of the DPR commended NNPC for the transparent manner it conducted the bid process noting that as the regulator of the industry, the DPR is impressed with the new wave of transparency sweeping across the value chain of the Corporation.

The contract for the engagement of qualified and reputable companies for the sale and purchase of Nigerian Crude Oil grades is conducted in consonance and in pursuance of the provisions of the Public Procurement Act 2007 and the BPP guidelines.

As part of the pre-qualification requirements, interested companies are expected to demonstrate the possession of minimum annual turnover of USD 750 million and net worth of at least USD 300 million, ability to establish an irrevocable Letter of Credit for the payment of any allocated Crude Oil subject to the contract terms as well as the ability to pay an initial deposit of USD 2.5million representing the first lifting deposit upon signing of the contract agreement among other requirements.

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