The Nigerian National Petroleum Corporation (NNPC) has issued an invitation for bids under the model of direct sale of crude oil and direct purchase of petroleum products (DSDP), Oil Price informed.
The DSDP model, under which selected overseas refiners allocate crude supplies in exchange for the delivery of an equal value of gasoline to NNPC, started in 2016, replacing the controversial crude for oil product swaps and Offshore Processing Agreements, reported Platts.
The NNPC invitation to tender stipulates that bids be submitted by February 2, 2017, and the duration of the DSDP arrangement be for a period of one year beginning April 1, 2017.
Nigeria’s imports of oil products are around 1m mt/month, but NNPC has recently said that imports were expected to fall after the recent restart of all four state-held oil refineries in the country.
Early 2016, after the Nigerian government suspended the previous crude oil swaps program, a parliamentary committee announced major anti-corruption findings in relation to the multi-billion-dollar model. The ad-hoc committee revealed that there were no formal contracts between NNPC and trading companies that received $24b worth of Nigerian crude oil between 2011 and 2014.