Crude Oil

Nigerian National Petroleum Corporation (NNPC) may announce the names of companies qualified for the lifting of the country’s crude oil for 2017 by mid-December.

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This was revealed in a statement credited to NNPC’s group general manager, Crude Oil Marketing Division, Mele Kyari.

According to reports, the NNPC boss said, “The crude tender will close on November 24 and we expect to have new contracts in place before the end of the second week of December.”

NNPC had issued guidelines for companies wishing to participate in the lifting of Nigerian crude for next year. According to the regulator, bids for these contracts are to be submitted by November 24, 12:00 Nigerian time. The contract is valid for a year from January 1.

Crude Oil Term Contracts

The crude oil term contracts involves the export of around 1.17mbpd of the nation’s crude, out of the daily production of 2.2mbpd. They are then sold by contract holders to end-users, refiners and other buyers.

Currently, 27 companies are involved in the 2016 crude term contracts, including both local and foreign companies.

Oil groups Total, Shell and ExxonMobil are current term contract holders. Also, trading firms like Trafigura and Vitol, India’s IOC and HPCL, China’s Sinopec. Indigenous trader, Sahara Energy is also a current holder.

Meanwhile, more indigenous companies are expected to be named in the 2017 term contracts. According to industry sources, this is as a result of renewed violence in the Niger Delta.