NNPC To Announce Winners Of Direct Sales, Direct Purchase Of Crude Oil Today
Barring any last minute change in plans, the winners of the bid for the Nigerian National Petroleum Corporation’s Direct Sale of Crude Oil and Direct Purchase of Petroleum Product would be announced by the Corporation today, THE WHISTLER has learnt.
The NNPC had in January this year called for Tender from players in the oil sector to bid for the 2021-2022 DSDP.
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The DSDP is part of measures by the NNPC to ensure sustained supply of petroleum products in the country
The DSDP is an arrangement that allows the NNPC to deliver monthly crude oil lifting on Free on Board (FOB) basis to supplier who shall in return, deliver petroleum products of Nigerian standard specification to NNPC on Delivered at Place (DAP) basis, at designated safe port (s) in Nigeria.
The petroleum products to be delivered would be equivalent in value to the Crude Oil received from NNPC subject to the general terms and conditions as would be advised to successful companies subsequently via Term Sheet (TS).
Based on the Invitation for Tender issued by the NNPC, interested and credible companies are expected to participate in this tender process.
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The duration of the 2021 – 2022 DSDP arrangement would be a period of One year (12 calendar months) commencing from a date that will be advised to successful bidders.
Three different types of company can participate in the bid process. They are foreign refinery owners capable of processing Nigerian crudes, with a Nigerian affiliate or subsidiary; globally established traders, with Nigerian affiliates or subsidiaries; and indigenous companies working in the downstream with trading expertise.
Bidders must meet various standards, such as audited accounts and minimum turnover thresholds. They must also meet Nigerian content requirements.
NNPC awarded the last round of DSDP contracts in August 2019, which expired in September 2020. However, these 2019-20 DSDP awards were extended by six months.
About 130 companies submitted bids in 2019, with 15 winning bids accepted. These included BP, Vitol, Gunvor and Trafigura, in addition to some local companies such as Sahara Energy and MRS Oil and Gas. NNPC included its own Duke Oil unit in the list of 15.
