Nigeria: NNPC Picks 15 Firms in 14bn Litres Crude-for-Fuel Swap Deals

19 August 2019

The Nigerian National Petroleum Corporation (NNPC) has said 15 oil firms have won the bids for its 2019/2020 Direct Sale of Crude Oil and Direct Purchase of 14 billion litres Petroleum Products (DSDP) arrangement.

The corporation's spokesman, Mr. Ndu Ughamadu, in a statement said following the completion of the tender exercise, 15 consortia/companies emerged successful. The contract is for one year effective October 1, 2019 to September 30, 2020.

Daily Trust reports that under the DSDP, NNPC sells crude oil directly to offshore refiners and receive products from same in return.

NNPC is targeting about 14 billion litres of products supplies from the 2019/2020 DSDP.

It listed the firms to include BP Oil International Ltd/AYM Shafa Ltd, Vitol SA/Calson-Hyson, Totsa Total Oil Trading SA/Total Nig. Plc, Gunvor International B.V./AY Maikifi Oil & Gas Co. Ltd, and Trafigura Pte Ltd./A. A. Rano Nig. Ltd.

Among the others are CEPSA S.A.U./Oando Plc, Mocoh SA/Mocoh Nig. Ltd, Litasco Sa/Brittania-U Nig. Ltd./Freepoint Commodities, MRS Oil & Gas Company Ltd and Sahara Energy Resource Ltd.

The tender process comprised technical and commercial bid submission, evaluation and shortlisting, commercial negotiations with prequalified companies and engagement of successful firms by NNPC.

"Under the DSDP arrangement, the underlisted 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", the corporation said.

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