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How potential investors can qualify for Nigeria’s 2021 crude lifting contract

Prospective local and international oil companies who desire to lift Nigerian crude next year must provide certificate of Registration/incorporation by Corporate Affairs Commission (CAC), if they are local companies and provide the equivalent of such documents issued by home Country’s Government Agency for foreign companies.

Interested bidders must provide certified true copies of memorandum and Article of Association of the company, evidence of compliance with pension law and tax clearance certificate for the last three years or evidence of exemption if that were the case.

Nigerian bidders must provide current Industrial Training Fund Compliance Certificate and prove they are registered on the National Database of Federal Contractors, Consultants and Service Providers by submission of Interim Registration Report (IRR) expiring on 31st December, 2020 or valid Certificate issued by BPP.

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The NNPC said it would start accepting bids from “interested and credible companies” to lift Nigerian crude and condensates from October for the next 12 months. The bulk of Nigerian crude is sold in Europe and Asia.

Bidders must own a refinery or retail outlet, have bilateral relationships with high energy consuming countries, own an internationally recognized large volume crude oil trader company or be indigenous Nigerian company engaged in the downstream sector.

The current 2018- 20 crude term contracts are held by more than 60 recipients, making it the largest list Nigeria has ever allocated.

Oil major Total, along with international oil trading companies Trafigura, Vitol and Glencore, Azerbaijan’s Socar, India’s International Oil Corporation and Russian Lukoil’s trading arm Litasco are some of the companies included in the 2018- 20 NNPC term contract list.

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