- The Nigerian National Petroleum Corporation (NNPC) has finalised crude term contracts, expected to run from 2021 through 2023.
- It has chosen 26 foreign and local companies as well as 12 countries to lift the country’s crude oil for the next two years.
- Â The firms as well as the selected nations would operate on a Government-to-Government (G2G) basis to purchase crude oil from the NNPC.
The Nigerian National Petroleum Corporation (NNPC) has finalised crude term contracts, expected to run from 2021 through 2023.It has chosen 26 foreign and local companies as well as 12 countries to lift the country’s crude oil for the next two years. The firms, as well as the selected nations, would operate on a Government-to-Government (G2G) basis to purchase crude oil from the NNPC.
Last week the corporation chose 16 oil and gas consortia for its new crude-for-fuel swap contracts for one year starting in August. These high-stakes agreements are known as Direct Sale, Direct Purchase (DSDP) . The contracts cover the supply of almost all of Nigeria’s petrol needs and some of its diesel and jet fuel consumption.
It is reported that in the fresh crude oil term agreements, the names of most of the companies involved in the DSDP deal also figured in the list of those chosen by NNPC for the crude term contracts. According to sources, the selected companies included Sahara Energy Resources Limited, Oando, Duke Oil (an NNPC subsidiary), Petrogas, AA Rano, MRS, Mercuria and Vitol.
Other oil and gas firms that were included are Oceanbed Trading Limited, Levene Energy, Bono Energy , Mocoh Energy, BP Oil, West Africa Gas Limited, Litasco SA, Emadeb, Hyde, Matrix and Brittania-U. Masters, AMG, Casiva, Barbedos, Trafigura, Hindustan and Patermina have also been qualified. The selected countries include China, Niger, Cote D’voire, Ghana, India, Togo, South Africa, Sierra Leone, Liberia, Turkey, Senegal, and Fujairah. NNPC has a 60 to 40 equity share of crude oil from its Joint Ventures (JVs), and thereafter appoints companies and issues licences to lift its share of the oil on a Free on Board (FOB) basis.On similar lines with Nigerian tenders, NNPC also highlights that the local content law must be strictly adhered to such as the use of Nigerian shipping companies, insurance and banks where possible.
