GMD, NNPC, Dr. Kachikwu
The
Nigerian National Petroleum Corporation, (NNPC) yesterday announced the
replacement of the Offshore Processing Arrangement (OPA) with the
Direct Sale-Direct Purchase (DSDP) option.
The DSDP is an alternative which allows for the direct sale of crude oil by the NNPC, as well as direct purchase of petroleum products from credible international refineries.
Under the former OPA arrangement, the NNPC undertakes to allocate a dedicated volume of crude oil for refining offshore locations in exchange for petroleum products at pre-agreed yield pattern.
The NNPC informed that the call for commercial bids issued to the 44 shortlisted bidders, made up of 34 international firms and 10 indigenous companies, had been withdrawn.
The corporation had only recently opened bids tendered by these companies for the award of the OPA.
In a statement by its spokesman, Ohi Alegbe, the NNPC explained that it came to this position after the evaluation exercise of pre-qualified bidders revealed that most of the 44 companies earlier shortlisted for the next stage of the tender process only had affiliations to refineries abroad, a situation which it described as introducing toll on the value-chain.
The corporation stated that if allowed to subsist, the development would in turn constitute a significant value loss to the federation by way of accruals.
It said the new step is designed to enshrine transparency and eliminate the activities of middlemen in the crude oil exchange for product matrix.
“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.
The DSDP is an alternative which allows for the direct sale of crude oil by the NNPC, as well as direct purchase of petroleum products from credible international refineries.
Under the former OPA arrangement, the NNPC undertakes to allocate a dedicated volume of crude oil for refining offshore locations in exchange for petroleum products at pre-agreed yield pattern.
The NNPC informed that the call for commercial bids issued to the 44 shortlisted bidders, made up of 34 international firms and 10 indigenous companies, had been withdrawn.
The corporation had only recently opened bids tendered by these companies for the award of the OPA.
In a statement by its spokesman, Ohi Alegbe, the NNPC explained that it came to this position after the evaluation exercise of pre-qualified bidders revealed that most of the 44 companies earlier shortlisted for the next stage of the tender process only had affiliations to refineries abroad, a situation which it described as introducing toll on the value-chain.
The corporation stated that if allowed to subsist, the development would in turn constitute a significant value loss to the federation by way of accruals.
It said the new step is designed to enshrine transparency and eliminate the activities of middlemen in the crude oil exchange for product matrix.
“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.
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