The Nigerian National Petroleum Corporation (NNPC) on Tuesday commenced bid rounds for 278 oil companies in attempts to take care of over 20 unsold cargoes in the market.
The Group Managing Director of the corporation, Dr. Ibe Kachikwu, who spoke in Abuja had directed NNPC to sell off the over 20 cargoes of crude oil.
Some of the companies who were being considered for the bids include: Televaris, Voyage Oil and Gas, Northbridge Energy, Linkstar Venture, United Refining Gashion, Stat Oil, Walter Smitth, SODE, Obat International Limited, Samgulf Petrolchemical Limited, Otahiyi Global Investment Company Limited and others.
Justifying the need for the bids, the Group Executive Director (GED) Commercial and Investment of the NNPC, Mr. Babatunde Adeniran had last week disclosed that the bid exercise was to take care of the over 20 unsold cargoes in the market.
He noted that following the new way of doing things in the country, the new NNPC is now on the path of transparency, accountability and probity which it brought to bear in the bidding process.
The process which is targeted to become effective in January would be concluded on November 20, to prepare crude for loading in two months’ time.
NNPC, he said, is attempting to ensure that the crude ends up in possession of the ultimate buyers in order to avoid the present shock in pricing. He added that the corporation will ensure that Nigeria is not a major contributor to her own pricing instability.
According to him, credible buyers are absent from the market and it has culminated in a situation where individuals hoard cargoes and remaining ignorant of their utilization.
He said that the corporation would guard against selling to one category of buyer in order to forestall hoarding of crude.
In a related development, the Head Crude Terminal Operations Department of Petroleum Resources (DPR), Mrs. Folasade Odunuga confirmed that the industry is actually undergoing a changing process that would guarantee transparency, accountability and the desired end.
She said the exercise will certainly get the crude to where it is needed timely.
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