NNPC awards 2017 crude oil term contracts to 39 companies

Nigerian National Petroleum Corporation (NNPC) has awarded its 2017 crude oil term contracts to 39 companies, the company said on Tuesday.

According to Reuters’ report, the contracts covering about 1.31 million barrels per day (bpd) of crude oil were awarded to 18 Nigerian companies, 11 international trading houses, five foreign refineries, three national oil companies and two “NNPC Group trading arms,” the firm said in a statement.

NNPC said the contracts, worth a total of more than $72 million per day at Tuesday’s crude prices of around $55.60 per barrel, were each for 32,000 barrels per day (bpd), apart from Duke Oil Ltd, an NNPC Group subsidiary, which was for 90,000 bpd.

The list compared with 27 companies that won contracts of varying sizes for 2016. OPEC member Nigeria typically produces just over 2 million bpd of crude oil, although its 2016 output was hobbled by militant attacks.

China’s Sinopec and India’s Indian Oil Corp were among the winners, as were international firms including the trading arms of BP and Total and trading houses Litasco and Glencore.

Absent from this year’s list were the trading arms of oil majors ExxonMobil, Shell and Eni, trading houses Mercuria and Taleveras and refiner Saras, all of whom were on the 2016 contract list. Vitol’s trading arm was also not on the list, although, Varo Energy, a joint venture between Vitol and private equity firm Carlyle Group, was.

NNPC head Maikanti Baru said the group had received bids from 224 companies. He said the decision to announce the winners reflected NNPC’s commitment to transparency.

“We’ll ensure transparency and fairness in the process,” Baru said in a statement.

 

Contract holder            Volume (‘000 bpd)

Refiners

Hindustan Refinery         32

Varo Energy                      32

Sonara Refinery               32

Bharat Petroleum           32

Cepsa                                   32

International Trading Companies

Trafigura                             32

ENOC                                   32

BP Trading                          32

Total Trading                     32

UCL Petro Energy           32

Mocoh Trading              32

Trevier Petroleum          32

Heritage Oil                       32

Levene Energy                 32

Glencore                            32

Litasco Supply and         32

Trading

Government to Government

Indian Oil Corp. (India –  32 IOC)

Sinopec (China)               32

SacOil (South Africa)      32

Nigerian Companies

Oando                                 32

Sahara Energy Resouce LTD  32

MRS Oil and Gas            32

A.A. Rano Nigeria Limited  32

Bono                                    32

Masters Energy               32

Hyde Energy                     32

Britania-U                           32

North West Petroleum       32

Optima Energy              32

AMG Petroenergy            32

Arkleen Oil & Gas Ltd      32

Shoreline Limited            32

Emo Oil                                32

Setana Oil                            32

Prudent Energy               32

NNPC Trading Companies

Calson/Hyson               32

Duke Oil Incorporated      90

Total: 39                  1.31 million