Corporation replaces offshore processing arrangement for crude oil direct sale

It said that the idea was designed to enshrine transparency and eliminate the activities of middlemen in the crude oil exchange for product matrix.

NNPC Group General Manager, Public Affairs Division, Ohi Alegbe

The Nigerian National Petroleum Corporation (NNPC) on Tuesday announced the replacement of the Offshore Processing Arrangement (OPA) option for an efficient Direct Sale-Direct Purchase (DSDP) of crude oil.

A statement by NNPC’s Group General Manager, Group Public Affairs Division, Mr Ohi Alegbe, stated that the DSDP would allow for direct sale of crude oil and petroleum products from credible international refineries.

It said that the decision was taken after the evaluation of pre-qualified bidders.

It said that the exercise showed that most of the 44 companies shortlisted for the next stage of the tender process only had affiliations with refineries abroad, a situation which introduced toll on the value chain.

It said that if allowed to subsist, the development would in turn constitute a significant value loss to the federation by way of 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 statement said.

The statement added 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bids issued to the 44 shortlisted bidders made up of 34 international firms and 10 indigenous companies had been withdrawn.


Eyewitness? Submit your stories now via social or:


Recommended articles

Mikel Obi has promised to support Gov Bello's bid for the presidency

President Buhari greets Gen Abubakar at 79

Army urges Boko Haram terrorists to surrender, says nobody is happy that people are dying

Asari Dokubo says Nnamdi Kanu is a criminal and conman

Tambuwal says PDP Governors determined to rescue Nigeria

BUK threatens to deal decisively with students if they protest their colleague's death

COVID-19: NCDC records lowest infection figure in more than 1 year

Okowa says justice, equity, fairness panacea for Nigeria's unity

Mikel Obi visits Yahaya Bello, harps on youth leadership