Home Business 224 firms bid to buy crude – NNPC

224 firms bid to buy crude – NNPC

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crude-oilAt least 224 companies have bidded to buy Nigerian crude through the 2016/2017 Nigerian National Petroleum Corporation (NNPC) Crude Term Contract.

Addressing journalists at the bid opening in Abuja, the Group Managing Director of the NNPC, Dr. Maikanti Baru, said the number of companies that will emerge from the bidding will be a factor of actual production focus in February next year.

He said: “The companies to emerge from the bid would be decided on actual production focus around February when the tenders are supposed to come in,” adding that the state-run oil firm selected about 37 companies from its bidding exercise last year.

Baru however pointed out that the volume that the Federal Government would be offering for sale from the transaction will be about 600,000 barrel per day (bpd) from the Joint Venture operations.

He added that 100,000 bpd would also be available from the transaction through royalties and taxes accruing from Production Sharing Contract (PSC).

Baru said: “It is the volume that we get our JV operations that is about 600,000 barrels per day when you have full operations. We also have somewhere in the region of 100,000 barrel per day in terms of royalties and  tax that is accruing from the PSC operations. So these are the kinds of volumes we are expecting for next  year.”

He said NNPC was looking forward to refiners,  gigantic traders and companies that have invested tremendously in the downstream oil sector.

“We are targeting refiners and also big traders as well as companies that have made substantial investments in the oil and gas industry, particularly, downstream in Nigeria,” Baru said.

Comment(1)

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