The contract for delivering crude oil to the refineries in Warri, Portharcourt, and Kaduna has been canceled by the Nigerian National Petroleum Corporation, NNPC.
The decision was announced on Tuesday by the company's
Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe,
Also terminated were the offshore processing agreements entered into in January this year with three companies, Duke Oil Company Inc., Aiteo Energy Resources Limited and Sahara Energy Resources Limited.
The corporation said that the contracts were canceled because of their exorbitant costs and inappropriate process of engagement. It added that the new measures were aimed at reducing costs and increasing operational efficiency.
In the meantime, NIDAS Marine Limited, an NNPC subsidiary has been engaged to provide crude oil delivery to the refineries pending the establishment of a substantive contract.
“We have also commenced a rigorous and transparent process of securing capable and competitive contractors for the delivery of crude oil by marine vessels to Port Harcourt and Warri/Kaduna Refineries pending the restoration of the crude pipeline infrastructure, ” said Mr Ohi Alegbe.
To correct the existing anomalies, Mr Alegbe said that the NNPC has commenced the process of establishing alternative OPA based on optimum yield pattern with tender processing fees.
“After due appraisal of performance trajectory, we have invited Oando, Sahara Energy, Calson, MRS, Duke Oil, BP/Nigermed and Total Trading to bid for the new Offshore Processing Agreement, while we have engaged AITEO, Sahara Energy and Duke Oil to exit the current OPA, ” Alegbe said.
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