A total of 254 indigenous and international companies have bid for the Nigerian National Petroleum Commission (NNPC) 2018/19 crude oil term contract.
Maikanti Baru, group managing director of the corporation, disclosed this on Tuesday during the bid’s opening ceremony of the bid in Abuja.
The number is 30 more than the 224 companies that bid for the contract in 2017.
Baru said the corporation currently has a scheduling of 14 cargoes of crude oil monthly being listed for the bidding process.
He added Nigeria also produces “about 1.8 million barrels of crude oil being exported per day without condensate, and about 2.25 million barrels per day including condensate”.
The bidding is the third being held since the current administration started.
In 2017, 39 companies won the bid for the contract, out of which 18 are Nigerian Companies; 11, international traders; five, foreign refineries; three, national oil companies (NOCs) and two NNPC trading arms.
TheCable Petrobarometer understands that NNPC will only accept tenders from bona fide end users who own refineries and/or retail outlets, are established and are globally recognised large volume crude oil traders.
Indigenous Nigerian companies wishing to participate must be those that engaged in downstream oil and gas business activities in the country.
Bidders must also have a minimum annual turnover of $500 million, or naira equivalent, and must be net worth of not less than $250 million or the naira equivalent, for the financial year ending of 2016.
About 26 Nigerian crude grades are on offer including Bonny Light, Forcados Blend, EA Blend, Bonga, Qua Iboe Light, Yoho Blend, Erha and Escravos Light.
Others are Pennington Light, Agbami, Brass Blend, Abo, Oyo, Okono Blend, Amenam Blend, Akpo Condensate, Usan, Atam Blend, Okwori, Okoro, Ima, Ukpokiti, Obe, Okwuibome, Ebok and Asaratoru.
While bidders would be required to pre-sign undertaking to strictly comply with Nigerian anti-corruption laws in processing the bid and executing the contract if successful, it would give major consideration to tenders that show compliance with Nigerian Content Act shall be a major consideration in the selection of applicants to lift Nigerian crude oil.
Submission of tenders will close by 12 noon of Tuesday, January 9, 2018.