NNPC awards new crude oil lifting contracts to 21 firms

Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu

The Nigerian National Petroleum Corporation, NNPC, on Thursday announced the award of new contracts to 21 crude oil off-takers, almost four months after President Muhammadu Buhari revoked the licenses from previous holders.

Indigenous Nigerian firms were awarded contracts to lift 41 per cent of total crude allocation, while major trading firms would control 47 per cent of the crude oil allocation. NNPC trading affiliates were awarded 12 per cent of the total allocation.

Shortly on assumption of office, President Buhari had ordered the immediate cancellation of all offshore crude oil processing agreements and crude oil swap deals for refined petroleum products between the NNPC and various oil traders around the world.

The deals, initiated by the Goodluck Jonathan administration, were to supply crude petroleum products for refining outside the country to cushion the negative impact of continued reliance on importation of fuel for domestic consumption.

The cancellation was to enable the government review and re-evaluate the contracts to help restructure the terms to be more favourable to Nigerians.

Crude oil swap for refined petroleum products took a controversial twist after some Nigerians, and some regulatory agencies, like the Nigerian Extractive Industries Transparency Initiative (NEITI), criticised the deals as lacking transparency and accountability.

The Ahmed Joda Presidential Transition Committee had also recommended the revocation of the contracts in its report to the new government.

Consequently, the government had invited fresh bids from prospective off-takers for the country’s 26 crude oil grades on offer.

At the expiration of the deadline for the submission of application by prospective bidders, about 278 bids were received from various indigenous and foreign firms seeking to secure the new contracts.

In October, following the bids opening exercise held in Abuja, 21 firms were announced winners of the contract as new off-takers.

A review of the new crude oil contract terms showed that 24 per cent of the total volume of 991,661 barrels per day of the Nigerian equity crude on offer, or about 240,000 bpd, was awarded to four refining firms classified as current major receivers with capacity to process all Nigerian crude grades.

Each of the off-takers awarded contracts to take 60,000 barrels per day of crude oil include Emirates National Oil Company (ENOC), Indian Oil Corporation, CEPSA Refinery Madrid and Sara SPA Refinery.

Three of the notable International trading companies, namely Trafigura PT Ltd, Mercuria Energy Trading SA and Vitol SA won the contract to lift 32,000 bpd of crude based on their capacities as large-scale buyers of Nigerian crude with structure for short term freight intervention and storage.

The off-takers in this category represent about 10 per cent of total crude volume on offer.

Trading affiliates of international oil companies consisting of ENI Trading and Shipping SPA, Total Oil Trading SA (TOTSA), Exxon Sale and Supply LLC and Shell Western Supply and Trading also received term allocation of 32,000 bpd each, totaling 128,000 bpd, representing about 13 per cent of total volume of crude oil on offer.

Under the new arrangement, indigenous Nigerian downstream players with considerable experience in crude oil trading and large asset base were allocated about 405,000 bpd, representing about 41 per cent of total crude volume on offer.

They include Emo Oil & Petrochemical Company/China Zhenhea, an NNPC long term trader (45,000 bpd); Northwest Petroleum and Gas Limited (45,000 bpd); Forte Oil (45,000 bpd); Oando PLC (60,000 bpd); Sahara Energy Resource Limited (60,000 bpd); A.A. Rano Nigeria Limited (45,000 bpd); Eterna Oil (45,000 bpd) and MRS Oil &Gas Company Limited (60,000 bpd).

NNPC Trading Companies, Carlson/Hyson was allocated contract to lift 32,000 bpd, while Duke Oil Incorporated, the NNPC affiliate was awarded contract for 90,000 bpd, accounting for combined off-take of 122,000 bpd, or about 12 per cent of total volume on offer.

The minister of State for Petroleum Resources, Ibe Kachikwu, said in Abuja on Thursday that apart from ensuring transparency, the companies were chosen based on their track records and trading experience to ensure that Nigerian crude oil cargoes were not left unsold.


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  • favourtalk

    We can now be rest assured that nigeria is now been runned by an experienced man and cabinet who will make sure that our wealth are not been stolen again. Nigeria will be great again under PMB

    • Peter_Edo

      Amen!

    • Burning spear

      when are u leaving for biafra

  • Peter_Edo

    hmmmm i see sahara energy there… tunde ayeni and captain hosa… guess they are back in good books

    • DD

      It’s a trap.

  • Very Proud Oily IZON Redeemer

    The same old stuff–the redistribtution of oil contracts to the tripod–The Fulanis– Yorubas and their Ibo surrogates——————-Yet they refuse to tell us Mrs. Madueke left more than 5.6b in the coffers of NNPC–so why take additional loan of 2.6 when we had such in our accounts of NNPC—-Buhari is taking advantage of the gullibility of 9ja to lies to them-

    • Artful ºDodger

      Take your medicine dude.

      • wonderboi

        Lol

      • Baba B

        His medicine supplier was among the sea pirates killed last week in ther creeks so his case is closed. He’ll die a mad man

  • Artful ºDodger

    At least Nigerians now know who is taking what and how much to expect from the sale of their crude oil unlike in the past when no one knows what was what. The selected refineries will deliver, they have experience in the trade and that is what counts. Since Nigeria now have a government run on patriotism things will soon change for the better.
    God bless PMB!

    • share Idea

      Just like Nigerians are buying fuel at appoved price from filling station as it used to be under GEJ’s administration

  • Analyst

    Which of the company is Buhari’s?

  • MushinSpeaks

    This is a good step to identifying real marketers than paying money to some unregistered oil marketers milking the treasury deep.

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  • Zug

    Ibe your brother Dumebi and his sticky fingers would be your undoing .Your list is littered with the usual Aso rock hanger on’s and Subsidy racket benifactors.What a sham……….What is Saayu Dantata the kerosene rackateer,criminal….crude thief and all round false accounting expert doing on this list,,what crude lifting cappabilities does AA Rano,Zenon or Northwestern have…Wouldnt blame the oldman at the top,he doesnt know any better but you and the i to must chop brigade around him are clearly eager to steal their own share as well.