The Nigerian National Petroleum Corporation (NNPC) has announced 15 companies as winners of its 2019/2020 Direct Sale of Crude Oil and Direct Purchase of Petroleum Products (DSDP) arrangement.
The announcement was made via a press release on Sunday by the Corporation’s Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu in Abuja. Out of 132 applications, the NNPC shortlisted 15 companies as winners.
The Details: According to the NNPC, following the completion of the 2019/2020 DSDP tender exercise, 15 consortia/companies made up of reputable and experienced international companies and Nigerian Downstream companies emerged successful to undertake the 2019/2020 DSDP arrangement. Meanwhile, the contract is for one year, effective 1st October 2019 to 30th September 2020.
The NNPC listed the successful companies as follows:
- 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.
- TRAFIGURA PTE LTD./A. A. RANO NIG. LTD
- CEPSA S.A.U./OANDO PLC
- MOCOH SA/MOCOH NIG. LTD.
- LITASCO SA/BRITTANIA-UNIG. LTD./FREEPOINT COMMODITIES
- MRS OIL & GAS COMPANY LTD
- SAHARA ENERGY RESOURCE LTD
- BONO ENERGY LTD./ETERNA PLC/ARKLEEN OIL & GAS LTD./AMAZON 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
- DUKE OIL COMPANY INCORPORATED
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The Contract: It was further revealed 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 NNPC.
“Under the DSDP arrangement, the under listed fifteen (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 release declared.”
The Backstory: In May, Nairametrics published that NNPC had officially opened bids for 2019 DSDP to its local and International business partners.
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A report showed that 132 companies submitted bids for about 14 billion litres of products under the DSP Scheme. In his address at the bid opening ceremony in Abuja, the Group’s former Managing Director of NNPC, Dr Maikanti Baru, disclosed that the essence of the bids was to ensure reputable qualified companies were engaged.
Baru stated that since the inception of the DSDP scheme in 2016, about 29.5 million metric tons (39.6 billion litres) of petroleum products have been supplied under the scheme, representing over 90 per cent of the national requirement.