In a major twist, the Nigerian National Petroleum Corporation (NNPC) yesterday opted to henceforth to buy crude oil and petroleum products directly from credible international companies.
This approach, it said, would ensure more transparency and eliminate middlemen in the crude oil exchange for product matrix. NNPC spokesman Mr. Ohi Alegbe said the time had come for the replacement of the 11 Offshore Processing Arrangement (OPA) options with the more efficient Direct-Sale-Direct Purchase (DSDP) alternative.
Alegbe explained that the NNPC took its position after the evaluation of pre-qualified bidders showed that most of the 44 companies earlier shortlisted for the next stage of the tender process only had affiliations to refineries abroad, thereby bringing a toll on the value chain.
The NNPC said if allowed to subsist, the development would constitute a significant value loss to the federation through accruals. “In this regard, only bona fide owners of refineries identified in the ongoing OPA Tender Evaluation process will be further engaged. The identified refineries will be subjected to due diligence and analysis by NNPC-appointed consultants to confirm suitability in line with international best practice,’’ the corporation said. NNPC said the call for commercial bids issued to the 44 shortlisted bidders made up of 34 international firms and 10 indigenous companies have been withdrawn.
The Corporation had on October 15, 2015 opened the 101 bids for OPA where it set a $1 billion baseline capacity, including that a company must own a refinery, affiliated to a refinery or access to a refinery as conditions for consideration.
