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132 companies bid for NNPC’s crude sales contract

The Nigerian National Petroleum Corporation (NNPC) has opened 2019 Direct Sale of Crude Oil and Direct Purchase (DSDP) to its local and international business partners.

The 132 companies came bidding for about 14 billion liters of products under the DSDP scheme.

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Group Managing Director of NNPC, Dr Maikanti Baru, said the essence of the bidding was to ensure reputable qualified companies were engaged.

Baru explained that the process was to ensure that the selection of off-takers aligned with transparent and accountable procedures in compliance with the Public Procurement and Nigerian Content Acts.

“It is in demonstration of President Muhammadu Buhari’s transparency and anti-corruption initiatives which the NNPC has imbibed and championed relentlessly.

“The DSDP scheme was introduced in 2016 with efficient and cost effective systems and processes to plug the value eroding loopholes of the January 2015 OPC contracts.

“Since the inception of the DSDP scheme in 2016 until March 2019, about 29.5million metric tons (39.6 billion liters) of petroleum products have been supplied under the scheme representing over 90 per cent of the national requirement.

According to him, the scheme has over the years ensured significant reduction in product demurrage cost in the range of 84 per cent and cost savings of about 2.2 billion dollars.

He assured the bidders that all the bids would be given fair consideration.

“The Scheme prides itself with a competitive pricing framework (lower than the PPPRA benchmark) which over the years has ensured a significant reduction in product demurrage of 84% and cost savings of about $2.2billion,” the GMD said.

This year’s DSDP contract which is expected to last for one year, will overall consume around 14 cargoes of crude oil per month.

About 14bn litres of petroleum products supplies are expected from the 2019/20 round, Baru said.

 

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