One hundred and twenty-eight companies have submitted bids for the rights to take part in the Nigerian National Petroleum Corporation (NNPC) Direct Sale of crude oil and Direct Purchase of products programme for this year involving about 800, 000 barrels of crude oil per day.
The Group Managing Director of NNPC, Dr. Maikanti Baru who declared opened the bid opening and evaluation process in Abuja on Thursday, said the programme which is part of NNPC’s effort to ensure adequate supply of petroleum products across the country will involve companies with physical presence in Nigeria.
Baru explained that although the corporation was looking for partners with proven track records in the industry, Nigerian companies would not be shut out from the process.
According to him, “Nigerians are not left out and we will make sure of that by ensuring that those that emerge whether it is a consortium or single must have physical presence in Nigeria. That means they must have depots or retail outlets as a minimum or they must be involved with exploration and production of crude oil.
“So, we must ensure that most of the proceeds are domesticated in Nigeria”.
He explained that the corporation was looking to eliminate some of the challenges encountered in the implementation of the programme last year which centred on products’ delivery.
“Some of the experiences we have are those of scheduling ahead, in the sense that when you ask for the product to be delivered they could not meet such LAYCAN days and so we want to make sure that whoever that would emerge will be meet our LAYCAN days because those have created some dislocations in distributions”.
Explaining why NNPC is continuing with the DSDP programme, Baru noted that since it was introduced, it has helped “greatly in the stablisation of products supply to the nation”.
He pointed out that the programme has also helped in reducing the cost of bringing in products with over half a billion dollars saved in the past year.
“It ensures that the supplies from the refineries are fully augmented to meet the national supply as well as a sustained over 30-days sufficiency particularly for petrol.
“The programme is very transparent and a major instrument of the partnership between NNPC and product suppliers both locally and internationally.
“We have as part of this programme been able to live up to our obligations as a supplier of last resort when products are not being supplied by the marketers on the basis of prices that will not give them sufficient margins”, he stated.
Earlier, a bid opening session was held for the supply of 4x4 687MVA generator involving 29 companies.