29 August 2015, Abuja — In a novel move to instill transparency and probity in the award of the annual crude oil term contracts, the Nigerian National Petroleum Corporation (NNPC) on Thursday mapped out measures to execute the 2015/2016 award of contracts to companies for the evacuation of Nigeria’s crude oil equity from the various crude and condensate production arrangements.
NNPC stated that as part of the measures to optimise the marketing of Nigeria’s crude oil and secure new market potential, the number of off-takers for the proposed 2015/2016 term contracts, which would emerge after a planned rigorous competitive bid has been pruned from 43 to 16.
A statement by the corporation’s spokesman, Mr. Ohi Alegbe, said: “In the days ahead, we shall place advertisements for the 2015/2016 term contracts and the publication will run for one month in major national and international print media to ensure effective message penetration.
“Later the guidelines for the selection of new off-takers would be published and subsequently a special bid evaluation committee would be constituted to conduct due diligence on successful applicants.”
NNPC also clarified that apart from the earlier listed industry operators whose performance trajectory impressed its management to invite them to bid for the proposed Offshore Processing Agreements (OPAs), the corporation extended the invitation for competitive bidding to Forte Oil and Mobil Oil, among others.
“We are throwing the tender process open for competitive bidding by strong industry players with track records of integrity and financial strength to execute the project,” NNPC stated.
A senior NNPC official added that as part of the selection criteria, bidders for the OPAs would be expected to provide proof of capability to raise letters of credit (L/Cs) for the value of the crude that shall be lifted by the companies.
He said the criteria for their selection would be stringent to ensure that “arm chair” companies which have short-changed the federal government in the past are not selected.
*Chineme Okafor – Thisday