The Nigerian National Petroleum Corporation (NNPC) has announced winners of its 2019/2020 Direct Sale of Crude Oil and Direct Purchase of Petroleum Products (DSDP) arrangement, whereby crude oil is swapped for petroleum products using middlemen.
The announcement, according to a release by Ndu Ughamadu, NNPC’s group general manager, Group Public Affairs Division, came after the completion of the 2019/2020 DSDP tender exercise, wherein 15 consortia/companies made up of local and international companies emerged to undertake the 2019/2020 DSDP arrangement.
Some of the companies include BP Oil International Ltd/AYM Shafa Ltd; Vitol SA/Calson-Hyson; TOTSA Total Oil Trading SA/Total Nig Plc; Gunvor International B.V/AY Maikifi Oil & Gas Co Ltd; Trafigura PTE Ltd/A.A. Rano Nig. Ltd; Cepsa S.A.U/Oando Plc, and Mocoh SA/Mocoh Nig Ltd.
Others are Litasco SA/Brittania-U Nig. Ltd/Freepoint Commodities; MRS Oil & Gas Company Ltd; Sahara Energy Resources; Bono Energy Ltd/Eterna Plc/Arkleen Oil & Gas Ltd/Amazon Energy; Matrix Energy Ltd/Petratlantic Energy Ltd/UTM offshore Ltd/Levene Energy Development Ltd; Mercuria Energy Trading SA/Barbedos Oil & Gas Services Ltd/Rainoil Ltd/Petrogas Energy; Asian Oil & Gas PTE Ltd/Eyrie Energy Ltd/Masters Energy Oil & Gas Ltd/Casiva Ltd, and Duke Oil Company Incorporated.
“Under the DSDP arrangement,” the release said, the listed 15 “consortia/companies shall over the contract period offtake crude oil and in return, deliver corresponding petroleum products of equivalent value to NNPC, subject to the terms of the agreement.”
Bid for the 2019 DSDP programme was opened to local and international potential offtakers and suppliers in May with 132 companies indicating interest to bid for 14 billion litres of products under the DSDP scheme.
The NNPC said the tender process comprised technical and commercial bid submission respectively, evaluation and shortlisting, then commercial negotiations with prequalified companies and engagement of the successful consortia/companies by NNPC. The new contract will be for one year effective October 1, 2019 to September 30, 2020, said NNPC.
According to the release, the action is in line with the Corporation’s avowed commitment to transparency and accountability in all its activities as committed by the new group managing director, Mele Kyari.
In his takeover note on July 8, 2019, Kyari had promised to open NNPC’s books to public scrutiny, saying as a publicly-owned company Nigerians deserve to know about the operations of the Corporation.
ISAAC ANYAOGU
