Fifty indigenous and foreign companies have been awarded contracts to lift Nigeria’s crude for the 2018/2019 crude oil term.
The 50 companies were among a total of 254 that participated in the bids held last January for the sale and purchase of the Nigerian National Petroleum Corporation (NNPC) equity crude under the 2018/2019 crude oil term contracts.
Although the firms have not been officially announced by the NNPC, insiders at the state-oil firm confirmed the 50 selected firms to media sources The formal announcement is expected anytime soon.
At the bids opening ceremony in January, the Nigerian National Petroleum Corporation (NNPC) spokesperson, Ndu Ughamadu, said eventual winners would be selected as licensed off-takers to trade on Nigeria’s equity crude for a 12 months period.
During the exercise in January, the NNPC Group Managing Director, Maikanti Baru, told prospective bidders that the exercise was to promote greater participation of Nigerian enterprises, while preserving world-class standards.
The Group General Manager, Crude Oil Marketing Division, Mele Kyari, listed some of the conditions potential off-takers were expected to meet under the 2018/2019 crude term contract
These include, possessing a minimum annual turnover of $500 million for 2016 and net worth of $250 million for 2016, apart from having the 2015 & 2016 audited accounts.
Mr Kyari said prospective off-takers was expected to equally demonstrate the capacity to establish an irrevocable Letter of Credit (LC) subject to contract terms.
Other conditions bordered on the marketability of Nigeria’s crude oil in the international market, particularly in Europe, which has remained the major market for Nigeria’s 26 crude oil grades.
The 26 Nigerian crude oil grades on offer included 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.
Mr Kyari said successful bidders would join in lifting over 700,000 barrels per day of crude oil by NNPC on Free on Board (FOB) basis.