278 Firms Bid for Nigerian Crude Oil Grades
278 Firms Bid for Nigerian Crude Oil Grades

278 Firms Bid for Nigerian Crude Oil Grades

By Editor

Press Release

The Nigerian National Petroleum Corporation (NNPC) on Tuesday boosted its transparency drive by opening 278 bids from local and foreign firms competing for contracts to sell and buy 26 Nigerian crude oil grades.   Major TV stations broadcast the event live. Representatives of bidding firms attended along with officials from the Bureau of Public Procurement (BPP), Department of Petroleum Resources (DPR), Nigerian Extractive Industry Transparency Initiative (NEITI), Nigerian Content Development and Monitoring Board (NCDMB), and civil society groups serving as independent observers.   Group Managing Director Dr. Ibe Kachikwu said the open bidding reinforced NNPC’s new agenda of transparency and efficiency in line with President Muhammadu Buhari’s oil and gas reforms.   He explained: “No one needs to call me personally to get crude allocation. This frees my time to focus on other critical areas.”   Group General Manager of Crude Oil Marketing, Mallam Mele Kyari, said the system will end “briefcase companies” and crude hawking. “We will pick only credible companies with strong records. Our goal is to sell directly to end users and cut out unnecessary middlemen,” he stated.   DPR representative Mrs. Folashade Odunuga praised NNPC for the transparent process, noting that the agency was impressed by the reforms.   The contract process complies with the Public Procurement Act 2007 and BPP guidelines.   Companies seeking qualification must show a minimum annual turnover of $750 million and net worth of $300 million. They must provide an irrevocable Letter of Credit for payments, and deposit $2.5 million as the first lifting fee at contract signing.   The 26 crude grades on offer include Bonny Light, Forcados Blend, EA Blend, Bonga, Qua Iboe Light, Yoho Blend, Erha, Escravos Light, Pennington Light, Agbami, Brass Blend, Abo, Oyo, Okono Blend, Amenam Blend, Akpo Condensate, Usan, Atam Blend, Okwori, Okoro, Ima, Ukpokiti, Obe, Okwuibome, Ebok, and Asaratoru.   Ohi Alegbe Group General Manager, Group Public Affairs Division, NNPC Towers, Abuja 27/10/15    

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