By Audrey Lotechukwu
MON, 07 DEC, 2020-theGBJournal- Nigerian National Petroleum Corporation (NNPC) has announced Invitation to Tender (ITT) from qualified and credible companies in a Direct Sale of Crude Oil and Direct Purchase of Petroleum Product (DSDP), to ensure ‘’sustained product supply in the country.’’
The DSDP scope requires that the NNPC deliver monthly crude oil lifting on Free on Board (FOB) basis to supplier who shall in return, deliver petroleum products of Nigerian standard specification to NNPC on Delivered at Place (DAP) basis, at designated safe port (s) in Nigeria.
”The petroleum products to be delivered shall be equivalent in value to the Crude Oil received from NNPC subject to the general terms and conditions as would be advised to successful companies subsequently via Term Sheet (TS),” the NNPC said.
According to the NNPC, the duration of the 2020 – 2021 DSDP arrangement shall be a period of One year (12 calendar months) commencing from a date that will be advised to successful bidders.
The ITT is open to three categories of companies-an established international end user who owns a refinery with the capacity to process Nigerian crude oil grades and has a Nigerian affiliate or subsidiary experienced in downstream oil and gas business or in partnership with an experienced Nigerian company engaged in downstream oil and gas business particularly petroleum products trading,
– An established and globally recognized large volume Petroleum Product Trading Company and has a Nigerian affiliate or subsidiary experienced in downstream oil and gas business or in partnership with an experienced Nigerian company engaged in downstream oil and gas business particularly petroleum products trading, and
– An Indigenous company engaged in Nigerian oil and gas downstream activities with trading of petroleum product expertise.
Foreign companies applying under first two categories, ‘’shall be required to demonstrate evidence of partnership with an experienced Nigerian downstream company that meets a minimum average annual turnover of N20billion for the financial years ending: 2017, 2018 and 2019 respectively,’’ the NNPC noted,
And, ‘’Indigenous companies applying under the category specified under (Indigenous company) shall meet the average minimum turnover of $400 Million (or the Naira Equivalent) and net worth of $200 Million (or the Naira Equivalent) for the financial years ending: 2017, 2018 and 2019 respectively. ‘’
NNPC management said in a statement today seen by theGBJournal that, ‘’all bids shall be opened virtually, following the deadline for bids submission at 12:00 noon, Thursday, 21st January 2021, using the NNPC Microsoft Teams. In case of any unscheduled holiday on the bid submission date, the deadline for submission of bids will be on the next working day. Accordingly, Bid Closing Date/time will be extended to the next working day and time.’’
See attached
DSDP ITT – PUBLICATION 2020 (1)
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