Fifteen firms have been selected by the Nigerian National Petroleum Corporation (NNPC) for its crude oil for refined fuel swap otherwise known as Direct Sale Direct Purchase (DSDP) arrangement.
NNPC's group general manager, Group Public Affairs Division, Mr. Ndu Ughamadu, who unveiled the successful companies following the completion of the 2019/2020 DSDP tender exercise, said that 15 consortia/companies made up of reputable and experienced international companies and Nigerian downstream firms emerged winners to participate in DSDP arrangement.
Ughamadu said that the outcome of the exercise was in line with the corporation's avowed commitment to transparency and accountability in all its activities under the new group managing director, Mallam Mele Kyari.
The contract is for one year effective October 1, 2019 to September30, 2020. Among the successful companies are BP Oil International Ltd/AYM Shafa Ltd, Vitol SA/Calson-Hyson, Totsa Oil Trading SA/Total Nig. Plc, Gunvor International B.V/AY Maififi Oil & Gas Co. Ltd, Trafigura PTE Ltd/AA Rano Nig Ltd and CEPSA SAU/Oando Plc.
Others are Mocoh SA/Mocoh Nig Ltd, Litasco SA/Brittania-U Nig Ltd/Freepoint Commodities, MRS Oil & Gas Company Ltd, Sahara Energy Resource Ltd, Bono Energy Ltd/Eterna Plc/Arkleen Oil & Gas Ltd/Aamazon Energy, Matrix Energy Ltd/Petratlantic Energy Ltd/UTM Offshore Ltd/Levene Energy Development Ltd, Mercuria Energy Trading SA/ Barbedos Oil & Gas Services Ltd/Rainoil Ltd/Petrogas Energy, Asian Oil & Gas PTE Ltd/ Eyrie Energy Ltd, Masters Energy Oil & Gas Ltd/Casiva Ltd and Duke Oil Company Incorporated.
Ughamadu explained that the tender process comprised technical and commercial bid submission respectively, evaluation and shortlisting, then commercial negotiations with prequalified companies and engagement of the successful consortia/companies by the NNPC.
He said: "Under the DSDP arrangement, the under listed 15 consortia/companies shall over the contract period, offtake crude oil and in return, deliver corresponding petroleum products of equivalent value to NNPC, subject to the terms of the agreement."
In his takeover note on July, 2019, Kyari promised to open NNPC books to public scrutiny, saying as a publicly-owned company, Nigerians deserve to know about its operations.
Kyari reiterated his management team's commitment to transparency and accountability when he had a maiden town hall engagement with NNPC staff where he launched the team's policy direction tagged: "Transparency, Accountability, Performance and Excellence (TAPE)."
He had said: "Under my leadership, NNPC will strive to be more credible, competent and accountable institution that manages the oil resources on behalf of the citizens of Nigeria in accordance with its mandate and the core persuasions of President Muhammadu Buhari."
The GMD added that for NNPC to maintain positive image, there must be transparency, shared values of integrity and professionalism among its members of staff.