The Nigerian National Petroleum Corporation, NNPC, has launched a tender process for fuel supplies in the country.

It stated that this falls under the NNPC’s direct sale-direct purchase (DSDP) mechanism.

Under this system, NNPC will provide monthly crude oil free on board (FOB) cargoes to suppliers, who shall provide petroleum products in return.

In the process, interested companies are expected to register their interest by December 22 at 12 noon for the 2020-21 DSDP process. Also, necessary documents are expected to be submitted by January 21 as NNPC will open these bids online.

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The products will be on a ‘delivered at place’ (DAP) basis, to designated ports in Nigeria.

The fuel shall be equivalent in value to the crude oil received from NNPC.

Under the ongoing process, three different types of company can participate, and they are Foreign refinery owners capable of processing Nigerian crudes, with a Nigerian affiliate or subsidiary.

Also, Globally established traders, with Nigerian affiliates or subsidiaries and indigenous companies working in the downstream with trading expertise are qualified to bid.

The DSDP contract will run for 12 months, starting at a yet to be revealed time.

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Bidders must demonstrate they meet various standards, such as audited accounts and minimum turnover thresholds. They must also meet Nigerian content requirements.

The NNPC began the DSDP process in 2016 and expects to continue this until 2023.

The Corporation awarded the last round of DSDP contracts in August 2019 and was due to expire in September 2020. However, these 2019-20 DSDP awards were extended by six months.

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Around 130 companies submitted bids in 2019, with 15 winning bids accepted. These included BP, Vitol, Gunvor and Trafigura, in addition to some local companies such as Sahara Energy and MRS Oil and Gas. NNPC included its own Duke Oil unit in the list of 15.

By Peace Obi

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