It is the policy of Federal Government of Nigeria to streamline procedures for those wishing to buy and sell Nigerian crude oil.
WHO MAY APPLY:
A bona fide end user who owns a refinery and retail outlets abroad. Details of the applicant's facilities, markets and volumes of crude oil processed over the last three years must accompany the application.
An established and globally recognized large volume trader. Such applicant must provide evidence of its global network, its activities and volumes of crude oil handled in the last three years.
A company that has built an export oil refinery in Nigeria.
Any applicant must have a minimum annual turnover of at least $100 million and net worth of not less than $40 million.
Successful applicants must show commitment to the development of the Nigerian economy by investing in any number of investment opportunities that abound either in the oil industry or other sectors or, as an alternative, in the short run, meaningful and sizeable investment in community development project(s) in the oil producing areas as may be acceptable. Investment areas include:
Upstream investments - to increase our oil reserves and production capacity;
Downstream projects in refining, processing, distribution and storage of petroleum products;
Gas utilization projects;
Solid mineral development; and
Industries with foreign exchange earning potentials.
(And any other areas of the economy acceptable to the SELLER.)
Successful companies in (A) and (B) above will be required to post a $1 million performance bond through a first class Nigerian bank in addition to the regular crude oil contract provisions.
The $1 million bond shall be cashed, if after six months of the signing of the crude oil contract, the investment has not been made or there is no evidence of a commitment to do so. In addition to the forfeiture of the bond oil contract will automatically terminate.
Shortlist of applicants for consideration for crude oil contract allocation will be drawn on the basis of successful economic intelligence reports. Such reports must confirm status claimed by applicant with respect to (A), (B); and 1 in OTHER CONDITIONS above.
Crude oil lifting shall be on the basis of a confirmed irrevocable Letter of Credit only. The Letter of Credit shall be in the name of holder; and
Where possible, government shall endeavour to maintain regional balance in the distribution of Nigerian crude oil contract holdings. For the purpose of this factor, regions shall be:
North and South America
Former Soviet Union and Eastern Europe
Asian and Australia
METHOD OF APPLICATION:
Interested companies should submit their applications accompanied with their last three (3) years audited accounts and other company information to include date of establishment, company activities, facilities, major markets, volume traded over the past three years, number of employee and company's objective and any other relevant data in a sealed envelope and to reach:
The Group Managing Director
Nigerian National Petroleum Corporation
Herbert Macaulay Way
Inquiries about the profitable investment opportunities in the oil industry should be directed to:
The Group General Manager
Corporate Planning and Development Division
42, Usuma Street
Cadastral Zone A5
We wish to additionally inform as follows:
In consonance with President Obasanjo's administration policy on transparency and accountability, Nigerian Crude Oil is NOT marketed on allocation basis;
Bidding rounds are advertised in the print and electronic media and all prospective buyers are free to tender on an open competitive basis;
NNPC DOES NOT sell Nigerian Crude Oil on barter (or counter-trade) basis.
CRUDE OIL MARKETING DIVISION (COMD) NNPC
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither NGEX nor any other independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein