Back door deals: NNPC Secretly Approves 6 Additional Companies to Lift Crude Oil

By Ikenga Chronicles October 14, 2016

Back door deals: NNPC Secretly Approves 6 Additional Companies to Lift Crude Oil

In a move that has raised many eyebrows, the Nigerian National Petroleum Corporation (NNPC) has increased the number of companies awarded the contract to lift Nigeria’s crude oil this year to 27 from 21 originally awarded the contract last year.

On Thursday, the NNPC through documents on their website stated that six additional companies have been cleared to lift crude oil. They are – Taleveras Petroleum Trading, Masters Energy, Sacoil Energy Equity Resources Limited, Strategic Fuel Fund, Sinopec (UNIPEC) and Hindustan Petroleum Corporation Limited.

The NNPC had in December 2015 announced that the contract for the lifting of its 950,000 barrels per day crude had been awarded to 21, out of the 278 companies that participated in the bidding process. A contract expected to run from January 2016 to December 2016.

However, in the document from its Crude Oil Marketing Division (COMD) released on its website Thursday, the NNPC increased the number of companies to 27 without explanations as to why the number was expanded and without stating the criteria used in selecting the six companies among the 257 companies that were not successful in the bid process.

Also, the inclusion of the six companies becomes questionable, in view of Nigeria’s dwindling crude oil output, in the face of the crisis in the Niger Delta. 

Prior to the announcement in December, the NNPC had disclosed that only 16 companies would be awarded the contract, but it ended up awarding it to 21 companies, also without any explanation as to why the participants were increased.

So far, the NNPC has not responded to queries seeking clarification. 

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