18 May 2018, Sweetcrude, Lagos — Oando, MRS, Total and forty-seven others, have been awarded oil term contracts by the Nigerian National Petroleum Corporation, NNPC, to lift specified volumes of the country crude oil output in 2018/2019.
Although state-owned company, the Nigerian National Petroleum Corporation, NNPC is yet to officially announce the names of the winners yet, a new report by Premium Times says the 50 companies were among a total 254 that participated in the bids held last January for the sale and purchase of equity crude under the 2018/2019 crude oil term contracts.
Other companies on the list seen by SweetcrudeReports include; AA Rano, Aipec oil and gas limited, AMG, Arkleen, Augusta, Barbedos, BB Energy, Bono Energy, Calson, Cassiva, Cepsa, Cretus, Emadeb, Eterna, Gladius Commodities, Glencore, Hinstock, HPCL, Leighton, Levene, Litasco, Master Energy, Matrix, Mocoh, North West, Ocean Bed (Sahara), Petraco, Petrogas, Propetrol, Prudent, Sacoil (Efosa Energy), Seer, Setena Energy, Setraco, Shoreline, Sahara, Socar, Sonara, Trafigura, Ultimate gas (Rahamaniyya), Vitol, Voyage, West Africa Gas, Zitts and Lords, ZR Energy (Trafigura), Obat oil and gas, and Duke oil.
The 26 Nigerian crude oil grades on offer included Bonny Light, Forcados Blend, EA Blend, Bonga, Qua Iboe Light, Yoho Blend, Erha and Escravos Light. Others are Pennington Light, Agbami, Brass Blend, Abo, Oyo, Okono Blend, Amenam Blend, Akpo Condensate and Usan. The rest include Atam Blend, Okwori, Okoro, Ima, Ukpokiti, Obe, Okwuibome, Ebok and Asaratoru.
The NNPC spokesperson, Ndu Ughamadu, had said at the bids opening ceremony in January, that winners would be selected as licensed off-takers to trade on Nigeria’s equity crude for a 12 months period.
During the exercise in January, the NNPC Group Managing Director, Maikanti Baru, told prospective bidders that the exercise was to promote greater participation of Nigerian enterprises while preserving world-class standards.
The NNPC Group General Manager, Crude Oil Marketing Division, Mele Kyari, also listed some of the conditions potential off-takers were expected to meet under the 2018/2019 crude term contract
These include possessing a minimum annual turnover of $500 million for 2016 and net worth of $250 million for 2016, apart from having the 2015 & 2016 audited accounts.
Mr. Kyari said prospective off-takers was expected to equally demonstrate the capacity to establish an irrevocable Letter of Credit (LC) subject to contract terms, adding that successful bidders would join in lifting over 700,000 barrels per day of crude oil by NNPC on Free on Board, FOB basis.
Other conditions for lifting were on the marketability of Nigeria’s crude oil in the international market, particularly in Europe, which has remained the major market for Nigeria’s 26 crude oil grades.