The Nigerian National Petroleum Corporation (NNPC) has announced the opening of invites to interested local and international companies to submit bids for crude oil contracts for the year 2021.
The request for bids to lift Nigerian crude and condensates was published yesterday and will be valid for one year. Interested companies are to submit their bid latest by 12:00 pm Nigerian time on October 15, 2020, according to the tender document released by NNPC.
The document specifically stated that refiners, companies forming part of a government-to-government arrangement, global crude oil traders and “indigenous Nigerian companies engaged in Nigerian oil and gas downstream activities” are eligible and can apply.
The current Nigerian crude oil term contracts (2018-2020) involve the export of around 1 million barrels per day (mbpd) of crude and condensate, out of the 2.2 million b/d Nigeria has the capacity to produce.
The guidelines said the crude will continue to be sold on a FOB basis, “subject to the execution of a sales and purchase agreement with selected buyers.”
The current contract, which had been expected to expire in mid-2020, will be rolled over until the end of the year. The current 2018-20 crude term contracts are held by more than 60 recipients, making it the largest list Nigeria has ever allocated. A sizeable chunk of these are domestic Nigerian companies that are new to the world of international oil trading.