Skip to main content

NNPC opens tender for 2015/ 2016 crude oil term contract

President Muhamadu Buhari has approved a tendering process for the 2015/2016 Crude Oil Term Contract and the evacuation of Nigeria’s crude oil equity from the various crude and condensate production arrangements.
The Nigeria National Petroleum Corporation (NNPC), which announced the presidential approval, said it will begin with the advertisement of the Crude Oil Term contract in both National and International print media for one month.
The new arrangement has been “carefully structured to weed out briefcase companies and rent seekers,” a statement by the Corporation last night said.

The NNPC confirmed the cancellation of crude oil swap contracts as well as Offshore Processing Agreement Contracts (OPA), which the corporation entered with traders under the previous administration of President Goodluck Jonathan.
The corporation announced new measures aimed at cost reduction and strengthening of operational efficiency across its value chain.
It said after proper evaluation and in line with the terms of contract for the delivery of crude oil to the refineries in Warri, Port Harcourt and Kaduna, it cancelled the current contract due to exorbitant cost and inappropriate process of engagement.
The Corporation noted that as a stop-gap measure, NIDAS Marine Limited, a subsidiary of the NNPC has been engaged to provide crude delivery service on negotiated industry standard rate pending the establishment of substantive contract.
The statement signed by Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe added: “We have also commenced a rigorous and transparent process of securing capable and competitive contractors for the delivery of crude oil by marine vessels to Port Harcourt and Warri/Kaduna Refineries pending the restoration of the Crude Pipeline infrastructure.”
The NNPC said it resorted to the delivery of crude oil to the refineries by marine vessels following incessant attacks on the Bonny-Port Harcourt refinery pipeline and the Escravos crude pipelines by vandals and oil thieves resulting in the complete unavailability of the pipelines in 2013.
The corporation also said the OPA contracts it entered in January 2015 with three companies, namely- Duke Oil Company Inc., Aiteo Energy Resources Limited and Sahara Energy Resources (Nig) Ltd, has been cancelled because it was “skewed in favour of the companies.”
Under the agreement NNPC allocates a total of 210, 000 barrels of crude oil per day for refining at offshore locations in exchange for petroleum products at pre-agreed yield pattern.
“However after detailed appraisal of the operation and its terms of agreement, the NNPC is convinced that the current OPA is skewed in favour of the company’s such that the value of product delivered is significantly lower than the equivalent crude oil allocated for the programme,’’ the Corporation said.
The NNPC also observed that the structure of the agreement does not guarantee unimpeded supply of petroleum products as delivery terms were not optimal.
To address these lapses, the NNPC said that it had commenced the process of establishing alternative OPA based on optimum yield pattern with tender processing fees.
“After due appraisal of performance trajectory, we have invited Messrs. Oando, Sahara Energy, Calson, MRS, Duke Oil, BP/Nigermed and Total Trading to bid for the new Offshore Processing Agreement while we have engaged AITEO, Sahara Energy and Duke Oil to exit the current OPA,’’ the NNPC stated.
On the status of the Crude for product exchange agreement (SWAP) reportedly entered into by the NNPC and some oil traders, the corporation informed that the last SWAP arrangement lapsed in December, 2014 and was never renewed.
Post a Comment

Popular posts from this blog

FG and labor leaders to meet today over planned strike action against increased pump price

The Federal government, leaders of the Nigeria Labor Congress NLC ‎and Trade Union allies will be meeting today May 16th to discuss on the planned strike action by the Labor congress. The labor leaders on Saturday May 14th gave FG till midnight of Tuesday May 17th to revert to the old pup price of petrol of N86.50 or face a total strike that may begin on Wednesday May 18th.

The Federal government and Labor leaders' meeting will hold at the office of the Secretary to the Government of the Federation in Abuja by 10am..

Those expected at the meeting include Minister of Labor Chris Ngige, leaders of NLC, TUC, Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, and their Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN counterpart.

TRAGEDY IN GHANA-Police officer, pregnant wife, daughter perish in gory accident,new born baby survives

A Police officer, his pregnant wife, their 3-year-old daughter and their nephew died in a horrible accident on the Adabraka road Sunday dawn.

The Police officer identified as Sergeant Francis Essuman 42, with his nephew Kobby 21, and their daughter Wilhelmina 3, were accompanying his pregnant wife, Elizabeth Essuman, 36, to the hospital to deliver when the accident occurred.

According to Chief Inspector Lilly Rockson in an interview with Adom News said, the pregnant woman delivered a bouncing baby boy in the taxi half way to the hospital prompting them to panic.

In a bid to quickly get her to the hospital to avert any complications, the taxi driver was compelled to speed but ended up crushing into a Sprinter bus which was on top speed from Tudu in Accra.

Title-crazy civil servants to go

Title-crazy civil servants are scared of being sacked, The Nation learnt at the weekend. Officials, who violated the Public Service Rule banning titles until after retirement, may be retired in the coming civil service reforms.
Only those whose titles were traditionally inherited may be spared but their postings and conduct will be put under watch.
According to sources, the government is disturbed that most of the top civil servants with honorary awards actually bought them at high fees.
The affected civil servants violated the rules which grants them the right to such honors only after retirement.
Besides committing the resources of Ministries, Departments and Agencies (MDAS) to such awards, most of the civil servants used the window to “grant favour to groups, persons, and communities in violation of their oath of office.”