101 firms jostle for fresh NNPC offshore processing deals

Global oil trading companies, Glencore, Vitol S.A, BP Oil worldwide, and Total Oil Trading S.A, have joined 96 other companies in bidding for the Nigerian National Petroleum Corporation (NNPC) Offshore Processing Agreements (OPA). The arrangement according to the NNPC, is expected to come in place by January 2016 and would last for 12 months.

Speaking at the flag-off of the exercise, the Group Managing Director of the NNPC, Dr. Ibe Kachikwu, noted that the Corporation has taken the pain to make the process leading up to the award open to public scrutiny to demonstrate before all members of the public that NNPC has nothing to hide.

Managing Director, Pipelines and Products Marketing Company Limited, PPMC a subsidiary of the NNPC, Esther Nnamdi-Ogbue, stated that the essence of the exercise was to provide a level playing field for all industry players and to cut- off middle men who have been exploiting the system.

Under the previous agreement, the NNPC allocated a total of 210,000 barrels of crude oil per day for refining at offshore locations in exchange for petroleum products at pre-agreed yield pattern. “That’s where we should be headed and that’s certainly the target that we have over the next 18 months”, he said.

Ogbue added that the Federal Government hopes that OPA agreements will take effect by January.

According to her, “As much as we support Nigerians, NNPC and PPMC are not Father Christmas; your price must be right”. This process entails taking Nigeria’s crude into refineries and process it in the refineries while we pay processing fee. NNPC must ensure the right price is adhered to so as to ensure that Nigerians get the best price at the filling stations. PPMC is commercial. I am looking at my bottom-line; Nigerians are impacted.

“If you don’t give the right price, it will affect you and me when it gets to the petrol stations when you want buy kerosene or LPG”. Therefore, we will prioritize profit while ensuring the price is right.

“One of the reasons I have asked the GED for refineries to be here is so that he has the responsibility of taking me out from future OPAs”.

A few of the firms that are involved in the OPA bidding are Emirate National Oil Company Singapore ltd, Enoch worldwide Refining & Marketing, Rain Oil Ltd, Petroco Oil Ltd, Litasco SA, Eni Trading & Shipping, Otni Brooks Ltd, Ontario Trading SA, Optimal Energy Resources Ltd, Green &Green Petrolchem, Ene gas.