The Nigerian National Petroleum Corporation (NNPC) said its subsidiary NIDAS Shipping Services has re-entered the international shipment of crude oil and petroleum products.
The company pulled out of business seven years after falling out of reckoning in the global oil freighting trade.
NIDAS’s re-entry is in tandem with the ongoing strategic re-engineering of some NNPC subsidiaries to ensure multiple income streams and value addition to the corporation in line with the aspiration of the corporation’s Group Managing Director, Dr. Maikanti Baru, a release by NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, has stated.
The corporation explained that as a first step to regain its market position, NIDAS has established a robust chartering and operation desk in its UK office to help the company secure sea-going vessels from spot market to herald its market re-entry and foster strong competitive edge.
Already, the company’s presence is generating some positive traction in the international freight space as global tanker fixture’s report last week acknowledged the chartering of LRI tanker, MV Atlantica Bridge by NIDAS to load jet fuel from El Dekheila Port, Egypt for delivery to Nigeria for Duke Oil.
The fixture report also captured NIDAS booking of tanker Res Cogitans to load Mercuria’s gasoline cargo for early-November loading from Europe’s ARA (Amsterdam-Rotterdam-Antwerp) region to Offshore Lagos.
NNPC said that as part of strategy to ensure effective participation in the entire supply value chain, NIDAS would optimize right of first refusal offer in the NNPC annual crude oil term and Direct-Sale-Direct Purchase (DSDP) agreements with off-takers.
Under the terms of the deal, the off-takers are obligated to offer the NNPC shipping subsidiary the right of first refusal in freighting of cargoes.
The long-term aspiration of the company is to own and operate fleet to secure a significant market share in the global shipping market.
Mr. Ughamadu said the development was part of the GMD’s 12 Business Focus Areas (12BUFA) which he unfolded when he took over the leadership of the corporation in 2016.
Incorporated in 2007 as a Joint Venture between NNPC, Daewoo Shipbuilding and Marine Engineering Company Limited (DSME), NIDAS is presently a wholly owned subsidiary of the corporation.
Subsequently, a Board of Directors was inaugurated by the GMD with Engr. Henry Ikem Obih, Chief Operating Officer Downstream, as chairman, while Mr. Lawal Sade was appointed Managing Director with mandate to drive the turn-around process and effective re-entry strategy of NIDAS into the international oil shipping business.