measures aimed at cost reduction and strengthening of operational efficiency across its
value chain.
The NNPC in a release by its spokesperson, Ohi Alegbe, 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 cancellation of the contract came weeks after PREMIUM TIMES contacted the
corporation asking for details of the curious engagement.
The corporation asked for time to enable it respond to our reporters’ enquiries, but
failed to do so until it issued this statement today.
This newspaper has been investigating the contract for months and our findings so far
are shocking.
Our report will be published in the days ahead.
The Corporation, in its statement today, 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.
“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 Corporation stated.
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 companies 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 said 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 said in a statement.
On the status of the Crude for product exchange agreement (SWAP) reportedly entered
into by the NNPC and some oil traders, the Corporation said the last SWAP
arrangement lapsed in December, 2014 and was never renewed.
The NNPC also said 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.
No comments:
Post a Comment