The
Nigerian National Petroleum Cooperation (NNPC) has cancelled the current
contracts on the supply of crude to the nation’s refineries.
The
move according to the cooperation is to curb the exorbitant cost and inappropriate
process of engagement.
While that subsist, NIDAS Marine Limited, a
subsidiary of the NNPC has been engaged to provide crude delivery service on
negotiated industry standard rate pending the establishment of substantive
contracts.
When another contract is in place, it will be
the delivery of crude to the refineries by marine vessels rather than through
the pipeline network, which the corporation says is susceptible to vandalism.
In the same vein, the Corporation also
terminated the Offshore Processing Agreements (OPA), entered into in January,
2015 with three companies, namely: Duke Oil Company Inc., Aiteo Energy
Resources Limited and Sahara Energy Resources (Nig) Ltd, claiming that the
current OPA is skewed in favour of the companies’ such that the value of
product delivered is significantly lower than the equivalent crude oil
allocated for the programme.
To the alternative, the NNPC has invited
Messrs, Oando, Sahara Energy, Calson, MRS, Duke Oil, BP/Nigermed and Total
Trading to bid for the new Offshore Processing agreement.
On the status of the Crude for Product
Exchange Agreement (SWAP) reportedly entered into by the NNPC and some oil
traders, the Corporation informed that the last SWAP arrangement lapsed in
December, 2014 and was never renewed.
Meanwhile, a tendering process for the
2015/2016 Crude Oil Term Contract for the evacuation of Nigeria’s crude oil
equity from the various crude and condensate production arrangements will soon
be commenced.
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