Tuesday 3 November 2015

NNPC withdraws 44 bids from oil firms; ...opts for direct crude sales

Nigerian National Petroleum Corporation (NNPC)
The Nigerian National Petroleum Corporation (NNPC) has withdrawn 44 bids of those that intend to participate in the Offshore Processing Agreement (OPA) and opted to sell crude directly to refiners.

The corporation said it took the step in a major steer designed to enshrine transparency and eliminate the activities of middlemen in the crude oil exchange for product matrix.

The NNPC noted that the call for commercial bids issued to the 44 shortlisted bidders made up of 34 international firms and 10 indigenous companies have been withdrawn.

According to a statement by the corporation, signed by its spokesman, Mr. Ohi Alegbe and made available to the Tribune Online, on Tuesday, the NNPC explained that it came to this position after the evaluation exercise of pre-qualified bidders revealed that most of the 44 companies earlier shortlisted for the next stage of the tender process only had affiliations to refineries abroad a situation which introduces toll on the value chain.

The corporation stated that if allowed to subsist, the development would in turn constitute a significant value loss to the federation by way of accruals.

"In this regard, only bonafide owners of refineries identified in the ongoing OPA Tender Evaluation process will be further engaged. The identified refineries will be subjected to due diligence and analysis by NNPC appointed consultants to confirm suitability in line with International best practice," the corporation said.

Credit: Nigerian Tribune

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