NNPC Unveils Companies To Trade Oil in 2017

The Nigeria National Petroleum Cooperation (NNPC) has finally unveiled 39 companies who would lift and trade Nigeria’s oil for the 2017 crude oil term contract.

The 39 companies where chosen from 224 companies who participated in an open bid.

The list, which was released on Tuesday night, includes 18 Nigerian companies, two NNPC trading companies and a host of international companies.

“The contract will run for one year, effective 1st January 2017 for consecutive twelve circles of crude oil allocation,” NNPC said in a statement.

“The list involves 18 Nigerian Companies, 11 International Traders, 5 foreign refineries, 3 NOCs and 2 NNPC trading arms. All the contracts are for 32,000 bpd except Duke Oil Ltd, a subsidiary of NNPC, which shall be for 90,000 bpd.”

At the open bid in November 2016, Maikanti Baru, group managing director of the NNPC, had said the number of bidders for the contract dropped from 278 that applied for the contract in 2015 due to the new requirements introduced by the corporation.

Baru said at the time that the process, which prioritised refiners and big crude oil lifters, would be concluded in February 2017.

“When we sell this crude oil, the money goes straight to the Central Bank of Nigeria (CBN) account on behalf of the federation. NNPC does not operate any of those accounts,” he had said, projecting transparency.

“The best inputs from the NNPC is confirmation that the money has been paid but we have no signature rights on this account, contrary to the perception that NNPC is hoarding some money on behalf of the Nigerian people, all the crude oil that we sell goes to the Nigerian people. There is nothing that is hidden, it is all open for everybody to see.”