The Nigerian National Petroleum Corporation (NNPC) has ended its highly controversial offshore processing arrangement (OPA) in favour of direct sale-direct purchase (DSDP).

The OPA deals, which involved middlemen in the crude-oil-exchange-for-product matrix, had been widely criticised as opaque, dubious and corrupt by industry experts.

With Nigerian refineries not producing enough to meet local demand, the NNPC trades part of its daily 440,000bpd allocation in exchange for products such as petrol, diesel and kerosene under OPA.

Announcing the new arrangement on Tuesday afternoon, Ohi Alegbe, the corporation’s spokesman, said it is a “major steer designed to enshrine transparency and eliminate the activities of middlemen in the crude oil exchange for product matrix”.

The DSDP allows for the direct sale of crude oil by NNPC as well as direct purchase of petroleum products from “credible international refineries”, he said.

Alegbe said the NNPC came to this “informed” position after the evaluation exercise of pre-qualified bidders revealed that most of the 44 companies earlier shortlisted for the next stage of the tender process only had affiliations to refineries abroad, “a situation which introduces toll on the value chain”.

If allowed to subsist, the development would in turn constitute a significant value loss to the federation by way of accruals, he said.

“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,” Alegbe said.

The NNPC said the call for commercial bids issued to the 44 shortlisted bidders made up of 34 international firms and 10 indigenous companies have been withdrawn.

muri4mig:

hopeforcharles:
Best move Nigeria has made, the damages these methods of swaps have cost us is terrible,
But i am asking Since our refinaries are working why not refine the products that we need locally and not buy proccesed product but sell raw product to those peeps let them buy and sell any where, had it been our leaders cared Nigeria would have been no 1 distributor of proccesed to African countries and abroad.

omenka:
The "body odour" has reached far away America. They smell it and they like it!

The most useless party in Africa and indeed the world, says Baba's utterances and strategy is "demarketing" Nigeria, meanwhile those to whom he's trying to sell his ideas think otherwise.

Only those with irreparably abused minds and perpetually sore losers would NEVER see the good intentions and deeds of this gentleman for our common good.

My faith in this man remains unwavering as he methodically performs the much needed surgical procedure on this patient that was rushed into the ER on May 29th.

Now Goats would be forced to eat grass which was what God in his infinite wisdom designed they to eat from creation. But somewhere along the line, the natural course of event was altered, the door to the barn was left wide open, and our Goats all became Ajebo Goats that fed exclusively on Yams and lost the appetite for grass, they grew so fat we started mistaking them for Buffalo.

I expect some initial resistance as they are forced out of the Barns into the fields to feed on their natural staple, but of course we know it would all be in futility- they only run the risk of starvation should they insist on Yams.

I expect the cries of secession to increase three folds with the implementation of this cost cutting policy.

The Goats behind these deals are the people sponsoring all that Biafra nonsense in the hope of distracting the government and ultimately crystalising chaos which would ensure they keep making abominable profits at the expense of the common man.

They see Baba as a threat to their control of the levers of our polity/economy and would do anything, regardless of its propriety, to ensure they perpetually lord it over us.

Toss a few change here and there they would, and the same people we saw yelling GEJ till thy Kingdom come from every rooftop and treetop they could have a foothold would be the ones shouting "Biafra", "death to the zoo"!!


May God continue to direct your hands Mr President. Slowly but surely, we are on the path towards a full recovery.

God bless Nigeria.

hopeforcharles:
Best move Nigeria has made, the damages these methods of swaps have cost us is terrible,
But i am asking Since our refinaries are working why not refine the products that we need locally and not buy proccesed product but sell raw product to those peeps let them buy and sell any where, had it been our leaders cared Nigeria would have been no 1 distributor of proccesed to African countries and abroad.

Pavore9:
Bad market for some!