254 Companies bid for Purchase of Nigerian Crude Grades

By Ted Peters on 09/01/2018

Share on facebook Yahoo mail icon Gmail icon

Views: 741

(R-L) Baru, Adokiye Tombomieye, General Manager, Commercial in Crude Oil Marketing Division, NNPC, H
(R-L) Baru, Adokiye Tombomieye, General Manager, Commercial in Crude Oil Marketing Division, NNPC, H

FOR the third consecutive year, the gale of transparency and innovation in the marketing and management of Nigeria’s crude oil grades was sustained on Wednesday as a total of 254 indigenous and foreign owned entities submitted bids for the sale and purchase of the Federal Government equity crude under the 2018/2019 crude oil term contracts.

The exercise which was beamed live on a national television network was also witnessed by officials of the Department of Petroleum Resources, DPR, Nigeria Extractive Industries Transparency Initiative, NEITI, Nigerian Content Development and Monitoring Board, NCDMB, as well as representatives of the civil society.

Eventual winners are expected to be off-takers licensed to  trade on the Nigeria’s equity crude for a 12 months period.

Nigeria’s crude oil allocation is done once every month to only successful companies.

Addressing the prospecting off-takers shortly before the commencement of the bid exercise, Maikanti Baru, group managing director of the Nigerian National Petroleum Corporation, NNPC,  said that the exercise was designed to promote greater participation of Nigerian enterprise, while preserving World-class standards.

He assured that the best practices would be adopted in the selection of bidders, as he promised fairness and just treatment in the process.

“I wish to remind the general public that the Crude Oil Term Contract is not a Procurement Contract but a process of selecting partners for the sale and procurement of NNPC Equity crude oil volumes,’’ Dr. Baru clarified during the bid opening session.

Providing further insight into the 2018/2019 crude term bid exercise, Mele Kyari, group general manager, Crude Oil Marketing Division,  informed that potential off-takers must be able to fulfill a long list of stringent requirements which include minimum annual turnover of $500 million for 2016 and Net worth of $250 million for 2016.

He added that apart from possession of 2015 & 2016 audited accounts, aspiring off-takers must demonstrate the ability to establish an irrevocable Letter of Credit, LC, subject to contract terms.

On the marketability of Nigeria’s crude in the international market, Malam Kyari said Europe remained the major destination of Nigerian crude grades, accounting for 36.59 per cent of the total sales, with Asia and the Far East receiving 28.43 per cent.

He said 16.57 per cent of Nigeria’s crude grades was exported to North America, 13.17 per cent to Africa, 2.84 per cent to South and Central America, while the rest of the world served as beneficiaries for the rest.

He informed that the sustained reforms in the marketing and disposal of Nigeria’s equity crude had eliminated the ugly incidents of ‘briefcase’ companies as witnessed in the past.

Representatives of the DPR, NEITI, NCDMB and the civil society expressed satisfaction with the level of transparency of the exercise.

Posted 09/01/2018 9:21:12 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

You may also like...
Archbishop Chukwuma hails Gov. Ugwuanyi on realistic 2018...

Ekiti Assembly rejects election results, adjourns till October...

Pope orders excommunication of Nigeria-born priest

Police destroy gun factory, recover 146 rifles in...

Ekiti APC secretariat sealed with Juju

PDP asks INEC to proscribe ‎APC

Herdsmen killings: We will hold government accountable –...

Air Peace passengers escapes death as cows take...

Hundreds of Nigerian troops missing after Boko Haram...

Court remands security guard for allegedly impregnating daughter...

Germany ready to repatriate over 30,000 illegal Nigerian...

254 Companies bid for Purchase of Nigerian Crude...

 

Latest News Oshiohmole dismisses reports on APC Governors’ gang-up against him Supreme Court annuls all APC Congresses in Rivers Gunmen in military uniform kill scores in Narayi, Kaduna Fayose arraigned, remanded in EFCC custody till Wed 2019: Fresh Crisis hits Atiku in South-East over failed Promises Why they want me out, by Oshiomhole, APC Chairman APC Primaries In Enugu A Charade – Osita Okechukwu, VON DG 2019: Buhari, Atiku dangle records, SGF at Southwest Those who feel they have another country free to go —Buhari Military plans another Python Dance in South-East Buhari warns against pipeline vandalism, commiserates with Abia explosion victims My VP role won’t conflict with Gov. Obiano, says Obi

 

Most Read NAFDAC eases processes, cost of registering products for MSMEs (6,896 views) Full Text of Governor Ifeanyi Ugwuanyi’s 2016 Budget Speech (5,378 views) Ex-Heads of State will protect Jonathan from persecution —Kukah (5,163 views) IPOB: ‘We need urgent clarifications on Nnamdi Kanu’s status, whereabouts’, UK Govt tells FG (4,643 views) ASUU strike: Senate intervention ends in deadlock (4,538 views) Ex-governor Adebayo, Keyamo, Arise, others get board appointments (3,782 views) Ugwuanyi commends FG’s siting of ICT University in Enugu (3,522 views) Nigeria ripe for Restructuring Now – Nwodo in Chatham House (3,509 views) Anambra: INEC releases 37 candidates for Nov poll (3,468 views) Buhari has disappointed Nigerians – Arewa Youth Forum (3,454 views) Quit notice: Kaduna Govt obtains bench warrant against Northern youths (3,451 views) Prince Arthur Eze canvasses support for Buhari, Ugwuanyi (3,416 views)

 

SECTIONS NEWS (527) EDITORIAL (6) POLITICS (370) SOCIETY (104) SPORTS (12) BUSINESS (216) HEALTH (16) EDUCATION (15) INTERNATIONAL (30) ENTERTAINMENT (7) TECHNOLOGY (1) COLUMNISTS (0) LETTERS (0) OPINION (8)

 

 

Julius Agwu - Crazy Interview Demands