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NNPC Wipes 27 Firms From Crude Lifting Contracts

Reduces Off-takers from 43 to 16

• Extends Invitation to Forte Oil, Mobil & Others to bid for new OPA


After announcing a series of reviews in its crude oil export deals with traders, Nigerian National Petroleum Corporation (NNPC) says it has slashed participants in the 2015/2016 crude lifting contracts, cutting the number to only 16.

The corporation had earlier declared termination of crude offtake contracts awarded by the past administration of the federal government and announced invitation of new bidders for both crude export deals and barter deals for refined products.

Spokesman of the corporation which has also suffered internal top management staff wipe off, Mr, Ohi Alegbe, stated weekend that “the number of off-takers for the proposed 2015/2016 term contract which would emerge after a planned rigorous competitive bid exercise has been pruned from 43 to 16.” He stated that the measure was part of measures to optimize the marketing of Nigeria’s crude oil and secure new market potentials.

In mapping out measures for a new contract regime in the industry, the corporation also took a contradictory step by inviting additional participants into the fray. Mr. Alegbe said the strategy was to instil transparency and probity in the award of the annual Crude Oil Term Contract for the evacuation of Nigeria’s crude oil equity from the various crude and condensate production arrangements.

He said a special bid evaluation committee would be constituted to conduct due diligence on successful applicants. He also stated that “apart from the earlier listed industry operators whose performance trajectory impressed Management to invite them to bid for the proposed Offshore Processing Agreements, OPA, the Corporation is extending the invitation for competitive bidding to Forte Oil and Mobil, among others. “We are throwing the tender process open for competitive bidding by strong industry players with track records of integrity and financial strength to execute the project,’’ the NNPC stated.

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