Crude Oil Opening Bid: NNPC Wants Only Competent Companies

As at midday on Tuesday, October 27, the NNPC had received tenders from 278 companies bidding for the sale and purchase of only 26 crude oil grades in Nigeria.

About 45 minutes after the submission of tenders was closed, the opening of the bid commenced, a process which the Group Managing Director of the corporation, Dr Ibe Kachikwu, said he looked forward to its conclusion and the selection of the most competent companies to allow him focus on other urgent matters.

The NNPC GMD said that only credible and competent companies capable of taking Nigeria’s crude to the appropriate market without hawking the crude or engaging in sharp practices would henceforth be shortlisted for the sale and purchase of crude oil grades.

Dr Kachikwu said that the practice in the crude allocation business this time would be a far departure from previous years as accountability and transparency would be enforced.

He told representatives of 278 companies bidding for crude oil grades that the corporation needs money back from 20 cargoes of crude oil which were still hanging and must be sold within one week, after a successful bidding process.

Total sale of crude oil in Nigeria is said to be between 35 to 40 billion dollars annually and Mele kyari of the Crude Oil Marketing Division of the NNPC said that this was low compared with other oil producing countries.

To set things right he said credible companies who will get to the end users in time must be brought on board.

The NNPC management sounded notes of warning to the bidding companies that no preferential treatment would be given in the selection process and no payment need be made to a third party or NNPC staff for the selection as only credible and competent companies would be selected.