Chuks Isiwu & Oscarline Onwuemenyi 16 November 2016, Sweetcrude, Lagos – The 2017 term contracts for the lifting of Nigeria’s crude oil could see more indigenous and domestic Nigerian companies being involved, SweetcrudeReports has gathered.
The Nigerian National Petroleum Corporation, NNPC, announced recently that it would be releasing the names of companies qualified for the lifting of the crude by mid-December.
The lifting deal involves the export of about 1.17 million barrels per day, mb/d, of Nigeria’s crude, out of the country’s 2.2 mb/d total production.
Industry sources revealed that more Nigerian companies could feature in the list in the light of renewed violence in the oil-producing Niger Delta region and the need to accommodate certain interests that would help with the resolution of the crisis in the Niger Delta, which has considerably cut Nigeria’s crude oil output and revenue from the source.
The need to accommodate more Nigerian companies is also in line with government’s Local Content Policy, which favours the involvement of increased number of indigenous companies in all aspects of business in the oil and gas sector.
As part of efforts to end militancy in the Niger Delta, leaders from the region met two weeks ago with President Muhammadu Buhari with a 16-point demand to the government, one of which is the allocation of oil blocks and contracts for crude oil lifting to indigenous companies from the region.
The Presidency is still looking into the demands and sources said allocation of contracts to more local companies could help douse the tension in the region.
NNPC’s lifting contracts for 2016 involved 21 companies, comprising international refiners, trading companies, Nigerian downstream firms and NNPC trading companies.
The list featured eight Nigerian downstream players – Emo Oil and Petroleum, Northwest Petroleum and Gas, Forte Oil Plc, Oando Plc, Sahara Energy Resources A.A. Rano Nigeria Limited, Eterna Oil and MRS Oil and Gas – and NNPC’s two trading partners – Carlson/Hyson and Duke Oil Incorporated.
The NNPC would be announcing the names of companies qualified for the 2017 contracts by mid-December, according to Group General Manager, Crude Oil Marketing Division, Mele Kyari.
Revealing this in a statement, Kyari said: “The crude tender will close on November 24 and we expect to have new contracts in place before the end of the second week of December.”
Earlier last month, NNPC had issued guidelines for companies wishing to participate in the lifting of Nigerian crude for 2017.
The offer document stipulated that bids for these contracts, valid for a year from January 1, be submitted by 12:00 Nigerian time (1100 GMT) November 24.
Besides local firms, other companies covered in the 2016 lifting contracts include multinationals ExxonMobil, Shell, Eni and Total. Other companies are Indian Oil Corporation, Emirates National Oil Company, Saras SPA, Marcuria, Cepsa, Trafigura and Vitol SA.