By Udeme Akpan
Nigerian National Petroleum Corporation, NNPC, has extended the nation’s crude for petroleum products contracts by six months, meaning that the deal will last till the end of this year.
Group Managing Director of the corporation, Mr. Maikanti Baru, disclosed at the sideline of the Organisation of Petroleum Exporting Countries, OPEC, seminar in Vienna, Austria that the contracts, popularly known as direct purchase agreements DSDP, were due to expire at the of June 2018.
A Nigerian delegate, already in Vienna, who preferred not to be named because he was not permitted to speak, told Vanguard in a telephone interview, yesterday, that the deal was rolled over to guarantee the supply of adequate domestic petrol in the nation.
He said: “Nigeria’s four refineries have not yet been able to meet domestic demand despite efforts made to rehabilitate them. Consequently, the NNPC has adopted this strategy to ensure adequate fuel is supplied in the country.
“Without this kind of arrangement, it will be difficult to provide adequate petrol for domestic consumption in the nation.”
However, Baru had at the 2018/2019 crude oil term contract bid opening ceremony in Abuja, disclosed that the successful companies would be selected based geographical spread and financial capability, adding that the companies would be lifting about 14 cargoes of Nigeria’s crude oil every month.
Baru had said the term contract is part of its focus to enhance its productions volumes, while ensuring that the best value is realised through competitive marketing of its various crude oil grades to international refineries and traders.
He had also noted that the NNPC is collaborating with key stakeholders to improve the overall security of its production sites, crude oil export lines and other critical oil and gas infrastructure.
Baru had stated that the crude oil term contract is not a procurement contract, but a process of selecting partners for the sales and procurement of NNPC equity crude oil volumes.
He had said, “The opening of the bids before the entire world is indicative of NNPC’s commitment to President Muhammadu Buhari’s drive for transparency and accountability in the conduct of government business. This is the third bid process the coming of this administration.”
Also speaking, Group General Manager, Crude Oil Marketing Division of the NNPC, Mr. Mele Kyari, had added that to qualify for the allocation, which would be done once every month to the successful companies in the 12-month period, the companies must present their 2015, 2016 and 2017 audited accounts and as well provide evidence of their tax clearance certificate.