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224 firms bid for Nigerian crude

Group managing director of Nigerian National Petroleum Corporation, NNPC, Dr. Maikanti Baru, yesterday disclosed that 224 bids were received from companies seeking crude oil lifting contract with Nigerian government.

The NNPC boss who disclosed this during the opening ceremony of the 2016/2017 NNPC Crude Term Contract Tender, held at the corporation’s headquarters in Abuja, said the NNPC is poised to enhance its production volumes, and ensure that best value is realised through competitive marketing of crude grades to the international refineries and traders.

According to him, the public bid opening marks the beginning of the 2016/2017 term contracts tender of Nigerian crude under the NNPC on behalf of the government and people of Nigeria.

Baru stated that proceeds from crude oil sales go straight to the Central Bank of Nigeria, CBN, contrary to speculations in some quarters that the NNPC is withholding some monies on behalf of Nigerians.

He said: “The significance of the bid opening is that it marks the beginning of the 2016/2017 term contracts tender of the Nigerian crude under the NNPC on behalf of the government and people of Nigeria. When we sell this crude the money goes straight to the Central Bank account on behalf of the federation and the nation. NNPC does not operate any of those accounts. The best that comes from NNPC is confirmation that the money has been paid. We have no signature rights on these accounts, contrary to the perception of several people that NNPC is withholding some monies for and on behalf of the Nigerian people. So, all the crudes that we sell go to the Nigerian people.

This goes to show and also continue to ensure the agenda of President Muhammadu Buhari as far as transparency and accountability is concerned. We also ensure fairness in all the transactions of the government. There is nothing done that is not open for everybody to see as you have seen today. That is what we do on all our tenders.”

On the volume of crude expected in the coming year, the GMD disclosed that the NNPC gets about 600,000 barrels per day from Join Venture operations.

“We also have somewhere in the region of 100,000 barrels per day in terms royalties and taxes, various tax oils that is received from production sharing contracts operations. These are the kinds of volumes we are expecting for next year,” he added.

He noted that companies that would emerge from the bidding would be decided on actual production forecast around February when the tenders are supposed to come in, adding that 27 companies were selected last year.

He noted that the corporation targets “refiners and also big traders as well as companies that have made substantial investments in the oil and gas industry particularly the downstream in Nigeria.”


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