Yemisi Izuora
About 254 companies made up of local and international firms have signified interest to lift Nigeria’s crude oil under the 2018/2019 term contract.
The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Maikanti Baru who made the disclosure while chairing the opening ceremony of the term contract in Abuja said winners will have to lift 14 cargoes of crude in the term of one year.
He explained that “the crude oil term contract is not a procurement contract but a process of selecting partners for the sale and procurement of NNPC equity crude oil volumes.”
He notes that the evaluation of the bids would take about four weeks and thereafter there will be the request for approval.
He, however, said that he did not know how many winners that would emerge from the exercise stressing that “It depends on how good the submissions are.”
“After evaluation which will take about three to four weeks, we will get the consent. Once we get the approval we will conclude it.
“I wouldn’t know how many will emerge. It depends on how good the submissions are.”
Baru explained that NNPC was taking steps to evaluate the submission in order to ascertain the credibility of the companies and their directors.
According to him, the corporation wouldn’t want its crude to enter questionable hands.
The NNPC helmsman said that contrary to the perception that the United States of America has exited completely from the importation of Nigerian crude owing to its own Shale oil, the US last year imported 16.5% of the nation’s crude.
His words: “Contrary to people’s perception that because of the Shale oil has taken off most of the markets of Nigerian crude.
“That is the perception we have as about two years ago we had very low export to particularly to the US. But last year we had up to 16.5% of our crude going to North America.”
The Group General Manager, Crude Oil Marketing Division, Mr. Mele Kyari in his presentation said that Europe still remains the highest importer of Nigerian crude, while Asia and the Pacific were next to them.
He rolled out requirements for qualifying the would be lifters, who have 30 days credit period. The companies, he said, must have a credit network of $250million and $500million turn over.
On crude production, Baru said that “As at today Tuesday, crude production without condensate we have gone up significantly today. We have about 1.8million barrels per day without condensate. If we add condensate we have made about 2.25million barrels per day. It is a significant improvement.”