The Nigerian National Petroleum Corporation (NNPC) has announced the re-entry of NIDAS Shipping Services, its subsidiary, into the international shipment of crude oil and petroleum products.
According to the corporation, NIDAS’s re-entry into the market comes after a seven-year hiatus in the global oil freighting trade.
“As a first step to regain its market position, NIDAS has established a robust chartering and operation desk in its UK office to help the company secure sea-going vessels from spot market to herald its market re-entry and foster strong competitive edge,” a statement by Ndu Ughamadu, NNPC spokesman, read.
“As part of strategy to ensure effective participation in the entire supply value chain, NIDAS would optimize right of first refusal offer in the NNPC annual crude oil term and Direct-Sale-Direct Purchase (DSDP) agreements with off-takers.
“Under the terms of the deal, the off-takers are obligated to offer the NNPC shipping subsidiary the right of first refusal in freighting of cargoes.”
Under the DSDP model, selected overseas refiners, trading companies and indigenous companies are allocated crude supplies in exchange for delivery of an equal value of gasoline and other refined products to the NNPC.
Incorporated in 2007 as a joint venture between NNPC and Daewoo Shipbuilding and Marine Engineering Company Limited (DSME), NIDAS is presently a wholly owned subsidiary of the corporation.
Following its establishment, Baru appointed Henry Ikem Obih as chairman and Lawal Sade as managing director.