5 refineries, 18 indigenous traders, 16 others win bid for 2017/18 NNPC contract

The Nigerian National Petroleum Corporation (NNPC) has released names of successful bidders for the 2017/2018 term contract.

The term contract is a contractual agreement between the Federal Government, represented by the NNPC and buyers of its crude oil.

The term contract will specify modus operandi of what quantity, price and forms of payment between the parties.

Overall, 39 bid winners emerged after the bidding process which was termed to be transparent due to its live coverage of the bidding process.

Among the 39 winners include five refineries, 11 international traders, 18 indigenous traders, two NNPC subsidiaries and three government corporations.

The refineries include: Hindustan refinery, Varo refinery, Sonara refinery, Bharat refinery and Cepsa refinery.

International traders include Trafigura, ENOC Trading, BP Trading, Total Trading, UCL Petro Energy, Mocho, Tevier Petroleum, Heritage Oil, Levene Energy, Glencore and Litasco Supply and Trading.

The three government corporations include India (India Oil Company), China (Sinopec) and South Africa (Saccoil).

The 18 indigenous companies include Oando, Sahara Energy, MRS Oil and Gas, A.A Rano, Bono, Masters Energy, Eterna Oil and Gas, Cassive Energy, Hyde Energy, Britania-U, NorthWest Petroleum, Optima Energy, AMG Petroleum, Arkleen Oil and Gas Ltd, Shoreline Limited, Emo Oil, Setana Energy and Prudent Energy while the two NNPC trading companies involved in the deal are Duke Oil Limited and Carlson Hyson.

The Group Managing Director (GMD), NNPC, Dr. Maikanti Baru had stated that “when we sell this crude oil, the money goes straight to the Central Bank of Nigeria (CBN) account on behalf of the federation. NNPC does not operate any of those accounts.

“The best input from the NNPC is confirmation that the money has been paid but we have no signature rights on this account. Contrary to the perception that NNPC is hoarding some money on behalf of the Nigerian people, all the crude oil that we sell goes to the Nigerian people. There is nothing that is hidden; it is all open for everybody to see.”

Furthermore, Baru assured that “It is the volume that we get from our JV operations that is about 600,000 barrels per day. We also have somewhere in the region of 100,000 barrels per day in terms of royalty and tax oils that is from the PSC operations; these are the kinds of volumes we are expecting.”