NNPC changes policy, opts for direct crude oil sale

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In a major departure policy designed to enshrine transparency and eliminate the activities of middlemen in the crude oil exchange for product matrix, Nigerian National Petroleum Corporation, NNPC will now sell its crude oil directly as it dropped the Offshore Processing Arrangement, OPA option.

This option is seen as more efficient alternative which allows for the direct sale of crude oil by NNPC as well as direct purchase of petroleum products from credible international Refineries.

The NNPC explained that it came to this position after the evaluation exercise of pre-qualified bidders revealed that most of the 44 companies earlier shortlisted for the next stage of the tender process only had affiliations to offshore refineries which thereby put a toll on the value chain.

The Corporation stated that if allowed to subsist, the development would in turn constitute a significant value loss to the Federation by way of accruals.

“In this regard, only bona fide owners of Refineries identified in the ongoing OPA Tender Evaluation process will be further engaged. The identified Refineries will be subjected to due diligence and analysis by NNPC appointed consultants to confirm suitability in line with International best practice,’’ the Corporation said.

The NNPC noted that the call for commercial bids issued to the 44 shortlisted bidders made up of 34 international firms and 10 indigenous companies have been withdrawn.

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