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254 Coys Bid To Purchase Nigerian Crude Grades

A total of 254 indigenous and foreign owned entities, Wednesday, submitted bids for the sale and purchase of the Nigerian government equity crude under the 2018/2019 crude oil term contracts.
The open competitive bidding has been the process of marketing Nigeria’s crude grades for three years now. The exercise was witnessed by officials of the Department of Petroleum Resources (DPR), Nigeria Extractive Industries Transparency Initiative (NEITI), Nigerian Content Development and Monitoring Board (NCDMB), as well as representatives of the civil society.
Eventual winners are expected to be off-takers licensed to  trade on the Nigeria’s equity crude for a 12 months period.
Nigeria’s crude oil allocation is done once every month to only successful companies.
Shortly before the commencement of the bid exercise, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, told the prospective off-takerd that the exercise was designed to promote greater participation of Nigerian enterprise, while preserving world-class standards.
He assured that the best practices would be adopted in the selection of bidders, promising fairness and just treatment in the process.
“I wish to remind the general public 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,’’ Dr. Baru said.
Potential off-takers must be able to fulfill a long list of stringent requirements which include minimum annual turnover of $500 million for 2016 and Net worth of $250 million for 2016.
Apart from possession of 2015 and 2016 audited accounts, aspiring off-takers must demonstrate the ability to establish an irrevocable Letter of Credit (LC) subject to contract terms.

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