Economy

132 companies bid for NNPC’s crude sales contract

Written by Maritime First

…As Reps committee set to submit report on missing N33bn PenCOM fund***

The Nigerian National Petroleum Corporation (NNPC) on Thursday opened 2019 Direct Sale of Crude Oil and Direct Purchase (DSDP) to its local and international business partners, and potential off-takers and suppliers with 132 organisations indicating interest. The 132 companies came bidding for about 14 billion liters of products, under the DSDP scheme.

Group Managing Director of NNPC Dr Maikanti Baru who set the process in motion said the essence of the bidding was to ensure reputable qualified companies were engaged.

Baru explained that the process was to ensure that the selection of off-takers aligned with transparent and accountable procedures in compliance with the Public Procurement and Nigerian Content Acts.

“The third public bid opening ceremony for the DSDP tenders is fully in line.

“It is in demonstration of President Muhammadu Buhari’s transparency and anti-corruption initiatives which the NNPC has imbibed and championed relentlessly.

“The DSDP scheme was introduced in 2016 with efficient and cost effective systems and processes to plug the value eroding loopholes of the January 2015 OPC contracts.

“Since the inception of the DSDP scheme in 2016 until March 2019, about 29.5million metric tons (39.6 billion liters) of petroleum products have been supplied under the scheme representing over 90 per cent of the national requirement.

“Through a transparent competitive bidding and evaluation process, the scheme has enlisted a robust supplier mix comprising of the big international players and strong Nigerian downstream companies for supply flexibility and local capacity development,” Baru said.

According to him, the scheme has over the years ensured significant reduction in product demurrage cost in the range of 84 per cent and cost savings of about 2.2 billion dollars.

He assured the bidders that all the bids would be given fair consideration.

Group General Manager, (GGM) Crude Oil Marketing Division, NNPC, Mele Kyari said the bid process was open to all to optimise local participation.

In another development, the House of Representatives ad hoc Committee investigating an alleged withdrawal of N33 billion from the National Pension Commission (PenCom) account would submit its report to the house next week, Rep. Benjamin Wayo (APC-Benue) has said.

Wayo, who is a member of the committee, disclosed this at the end of the public hearing on Thursday in Abuja.

He said that the committee was determined to correct the wrongs in the sector and would submit a comprehensive report to the house for consideration and adoption. 

He said that the investigation was purely about improving the plight of retirees and not to witch-hunt anybody.

The lawmaker called on all relevant stakeholders and the general public with any information or idea that would improve the pension system in the country to write to the committee within the next four days.

He said that the committee was in the position to advise the government and was willing to take inputs from the public.

Adjourning the hearing sine die, the Chairman of the Committee, Rep. Ekanem Asuquo (PDP-Akwa-Ibom) said that there was need to improve the sector.

Asuquo said that the committee would recommend sanctions where necessary and proffer solutions and advice on how to better manage the system.

He said that all public workers would one day become pensioners, calling on stakeholders to join hands together to improve the system.

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Maritime First