The Nigerian National Petroleum Corporation (NNPC) has released the guidelines for its 2019 crude oil-for-product swap programme, known as the Direct Sale and Direct Purchase (DSDP) scheme.
The guidelines, which have been released pursuant to the Public Procurement Act 2007 and NNPC’s Policy and Procedures, outline the NNPC’s intention to engage qualified and credible companies in a Direct Sale of Crude Oil and Direct Purchase of Petroleum product (DSDP) to ensure sustained product supply in the country.
Under the DSDP scheme, NNPC shall deliver monthly crude oil lifting on a Free on Board (FOB) basis to supplier who shall in return, deliver petroleum products of Nigerian standard specification to NNPC on Delivered at Place (DAP) basis, at designated safe port(s) in Nigeria. Interested parties are invited to participate in the tender process by applying under the following categorizations:
- An established International end user who owns a Refinery with the capacity to process Nigerian crude oil grades and has a Nigerian affiliate or subsidiary experienced in downstream oil and gas business or in partnership with an experienced Nigerian company engaged in downstream oil and gas business particularly petroleum products trading
- An established and globally recognized large volume Petroleum Product Trading Company and has a Nigerian affiliate or subsidiary experienced in downstream oil and gas business or in partnership with an experienced Nigerian company engaged in downstream oil and gas business particularly petroleum products trading.
- An Indigenous company engaged in Nigerian oil and gas downstream activities with trading of Petroleum product expertise.
The NNPC has also specified that compliance with the Nigerian Oil and Gas Industry Content Development Act 2010, shall be a major consideration during the tender process.
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