Nigeria’s state oil firm NNPC began auctioning annual crude term contracts on live television on Tuesday, reported Reuters. The contracts are for nearly 2 million b/d of crude oil exports.
This time round, however, NNPC has vowed to cut the number of contract holders by a third in a drive to boost transparency at an institution dogged by corruption.
The company plans to cut the current number of 43 contract holders to just 16.
“This is not business as usual. This is going to be different,” an NNPC official said during the televised round.
“The essence of this really is … that you can go to this process and sign off your long-term contracts…,” NNPC chairman Emmanuel Ibe Kachikwu told bidders assembled at the NNPC headquarters.
According to TVC News, 278 companies have submitted their bids, including both local and foreign oil companies.
Italian energy giant Eni and India’s national oil company, India Oil Corporation Limited, are among the competitors.