The Nigerian National
Petroleum Corporation (NNPC)
Wednesday announced new
measures aimed at cost
reduction and strengthening
of operational efficiency across its value chain.


The NNPC in a release stated
that after proper evaluation
and in line with the terms of
contract for the delivery of
crude oil to the nation’s
refineries in Warri, Port Harcourt and Kaduna, the
Corporation has cancelled the
current contract due to
exorbitant cost and
inappropriate process of
engagement. The Corporation noted that as
a stop-gap measure, NIDAS
Marine Limited, a subsidiary
of the NNPC has been engaged
to provide crude delivery
service on negotiated industry standard rate pending the
establishment of substantive
contract. A statement of the Group
General Manager, Group Public
Affairs Division, Mr. Ohi Alegbe
that made this disclosure
quoted the corporation as
saying “We have also commenced a rigorous and
transparent process of
securing capable and
competitive contractors for
the delivery of crude oil by
marine vessels to Port Harcourt and Warri/Kaduna
Refineries pending the
restoration of the Crude
Pipeline infrastructure.” The NNPC explained that it
resorted to the delivery of
crude oil to the refineries by
marine vessels following
incessant attacks on the
Bonny-Port Harcourt refinery pipeline and the Escravos
crude pipelines by vandals and
oil thieves resulting in the
complete unavailability of the
pipelines in 2013. The Corporation also
announced the termination of
the Offshore Processing
Agreements, OPA, entered
into in January, 2015 with
three companies, namely- Duke Oil Company Inc., Aiteo
Energy Resources Limited and
Sahara Energy Resources (Nig)
Ltd. Under the agreement
NNPC allocates 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. “However after detailed
appraisal of the operation and
its terms of agreement, the
NNPC is convinced that the
current OPA is skewed in
favour of the company’s such that the value of product
delivered is significantly
lower than the equivalent
crude oil allocated for the
programme,’’ the Corporation
said. The NNPC also observed that
the structure of the
agreement does not
guarantee unimpeded supply
of petroleum products as
delivery terms were not optimal. To address these lapses, the
NNPC informed that it has
commenced the process of
establishing alternative OPA
based on optimum yield
pattern with tender processing fees. “After due appraisal of
performance trajectory, we
have invited Messrs. Oando,
Sahara Energy, Calson, MRS,
Duke Oil, BP/Nigermed and
Total Trading to bid for the new Offshore Processing
Agreement while we have
engaged AITEO, Sahara Energy
and Duke Oil to exit the
current OPA,’’ the NNPC
stated. On the status of the Crude for
product exchange agreement
(SWAP) reportedly entered
into by the NNPC and some oil
traders, the Corporation
informed that the last SWAP arrangement lapsed in
December, 2014 and was
never renewed. The NNPC also informed that
it has obtained the permission
of President Muhammadu
Buhari to kick-start the
tendering process for the
2015/2016 Crude Oil Term Contract for the evacuation of
Nigeria’s crude oil equity from
the various crude and
condensate production
arrangements. The Corporation noted that
the process which would
commence with the
advertisement of the Crude Oil
Term contract in both
National and International print media for a period of
one month has been carefully
structured to weed out
“briefcase companies’’ and
rent seekers. 

www.thenationonlineng.net/nnpc-nullifies-crude-oil-to-refinery-contract/

Okk ooo

Another hammer blow is struck on corruption.
Now briefcase contractors and oil and gas overnight billionaires would dust up their CV's and look for proper,legitimate jobs because no matter d billions u have,it will sooner get exhausted if one no longer has a steady income stream.

In a way, I think just like the devil PMB just have to sit and watch people fix things in his name. Cuz they in the ministries and departments have been the cause of our problems. Now they wanna appear good before the public.

Next I walk into a filing station I'll say 'Buhari say'

summary
1,450000 barrels of oil are shipped to the refineries through private owned vessels which is considered according to initial landing cost though pipelines as expensive

2,the pipelines conveying crude to the refinerieries are not worth it because of unabated vandalisation hence it had to be temporarily shit down

3,nnpc ask its subsidiary to ship the crude to the refineries but it does not HAVE VESSELS IT HAS TO USE PRIVATE VESSELS

4,it continues until it is safe to pump crude through the lines to the refineries


SOMETHING DOES NOT ADD

baralatie:
summary
1,450000 barrels of oil are shipped to the refineries through private owned vessels which is considered according to initial landing cost though pipelines as expensive

2,the pipelines conveying crude to the refinerieries are not worth it because of unabated vandalisation hence it had to be temporarily shit down

3,nnpc ask its subsidiary to ship the crude to the refineries but it does not HAVE VESSELS IT HAS TO USE PRIVATE VESSELS

4,it continues until it is safe to pump crude through the lines to the refineries


SOMETHING DOES NOT ADD

Is always a pleasure reading a comment where the bullsh1t in this country is laid bare for all to see. OP, thanks, you are so on point.

Na like this subsidy take start; initially with good intention and with hope that it will end as soon as possible but we all knw how the thing take dey go now.

Anybody wey believe say Nigeria go change and become a better country dey dream.

You take off contracts from Nigerian companies employing Nigerians and expanding the economy and give it to an international oil company. What a dumb idea of a puppet government being controlled by the western world.