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NNPC offers 26 Nigerian crude oil grades for sale

by Business News Report

The Nigerian National Corporation (NNPC), says it has 26 crude oil grades to offer for sale to companies that would eventually win the bidding contracts for the sale of Nigeria oil grades. The corporation gave this indication in a statement issued in Abuja on Wednesday, signed by its Group General Manager, Group Public Affairs Division, Mr Ohi Alegbe
NNPC had conducted public opening of bids submitted by 278 national and international companies competing to secure Nigerian crude oil grades. The public bid process, which was conducted By NNPC officials, was witnessed by representatives of the bidding companies as well as officials of the Bureau of Public Procurement, (BPP) and Department of Petroleum Resources, (DPR).
Others are Nigerian Extractive Industry Transparency Initiative, NEITI, Nigerian Content Development and Monitoring Board, NDCMB as well as members of the civil society attending as independent assessors. The contract for the engagement of qualified and reputable companies for the sale and purchase of Nigerian Crude Oil grades is in pursuance of the provisions of the Public Procurement Act 2007, and the BPP guidelines.
The statement quoted the Group Managing Director of NNPC Dr Ibe Kachikwu as saying that the essence of the public opening of bid, was to consolidate on the new promise of transparency and efficiency in line with President Mohammadu Buhari’s agenda for the oil and gas industry.
“The essence is to ensure that nobody needs to call me personally as Ibe Kachikwu for him to get crude allocation. So you can imagine the burden it takes off my shoulders. It means a good amount of my time will now go into other relevant areas of operation where the country needs me most,” he said.

According to the statement, the 26 grades Nigerian crude oil on offer include Bonny Light, Forcados Blend, EA Blend, Bonga, Qua Iboe Light, Yoho Blend, Erha and Escravos Light. Others are Pennington Light, Agbami, Brass Blend, Abo, Oyo, Okono Blend, Amenam Blend, Akpo Condensate and Usan.
The rest include Atam Blend, Okwori, Okoro, Ima, Ukpokiti, Obe, Okwuibome, Ebok and Asaratoru.
The statement said part of the requirements for interested companies included the possession of a minimum annual turnover of 750 million dollars and net worth of at least 300 million dollar in asset. It said that the companies were to also establish an irrevocable letter of credit for the payment of any allocated crude oil, subject to the contract terms.
It also gave as a condition that the companies must possess the ability to pay an initial deposit of 2.5 million dollars, representing the first lifting deposit, upon signing of the contract agreement, among other requirements.

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