International oil trading companies, Glencore, Vitol S.A, BP Oil International and Total Oil Trading S.A have joined 96 other companies in bidding for the Nigerian National Petroleum Corporation, NNPC Offshore Processing Agreements, OPA.
The successful companies in the process are expected to lift about 210,000 barrels of Nigeria’s crude oil within a 12 months period, starting from January 2016.
Speaking at the bid Group Managing Director of the NNPC, Mr. Ibe Kachikwu, stated that it is committed to ensuring that the process is transparent and beneficial to the country.
He noted that the OPAs are very important in light of the fact that the countries refineries are not working at optimal capacity.
He expressed optimism that the current bid process would present an opportunity for the best companies to emerge, adding that the NNPC is concerned with companies with known track record, have solid investments in Nigeria, with global recognition and access to refineries.
He further stated that the NNPC is hoping that this would be the last bid process for OPA, especially as it is expected that the countries refineries would resume production in the next couple of months.
The OPA deal is such that the NNPC undertakes to allocate a dedicated volume of crude oil for refining at offshore locations in exchange for petroleum products at pre-agreed yield pattern.