The Nigerian National Petroleum Corporation (NNPC) recently opened bids from 128 companies that showed interest for 2017 Direct Sale Direct Purchase (DSDP) or crude/product swap which it projects to involve about 800,000 barrel per day (bpd).
While declaring the bid opened in Abuja, the Group Managing Director (GMD), Maikanti Baru, noted that primary consideration of the bid was to ensure that Nigerians are not left out of the exercise.
According to him, “The major drive here is to ensure that Nigerians are not left out. And we make sure by ensuring that those that emerge whether it is consortium or single must have physical presence in Nigeria.”
Baru also disclosed that the corporation is taking necessary precautionary steps to avoid the pitfalls they had experienced in the past where bid winners could not meet their link date, adding that they are guarding against any form of dislocation that could crop up in the DSDP operation. He said that the DSDP has helped greatly in the stabilization of product supply to the nation since its inception.
Baru made it known that they decided to continue DSDP because the system had helped in stabilizing products supply since it was introduced and it has also reduced the cost of bringing in products with over half a billion dollars saved in the past year.
He assured that they had done their home work properly in ensuring that the supplies from the refineries are increased to the max in order to meet the national needs, most especially in the area of petrol.
Lauding the programme, he said, “The programme is very transparent and a major instrument of the partnership between NNPC and product suppliers both locally and internationally.
“We have, as part of this programme, been able to live up to our obligations as a supplier of last resort when products are not being supplied by the marketers on the basis of prices that will not give them sufficient margins.” He added.
Shedding more light on the participation in the system, he said that it is opened for partners who meet the necessary requirement and have verifiable track records in the petroleum industry.
He explained, “If Nigerians wish to bid and participate, they must have depots or retail outlets as a minimum requirement or they must be involved with exploration and production of crude oil. So, we must ensure that most of the proceeds are domesticated in Nigeria,”
The corporation revealed that about N152. 5 billion was saved last year through the adoption of the (DSDP) programme.
In a related development, Baru has given the assurance that NNPC is committed towards bringing the country out of its present economic meltdown.
He made this known recently when the Managing Director of the News Agency of Nigeria (NAN), Mr. Bayo Onanuga, paid him a courtesy visit at NNPC towers Abuja.
According to him, “We are committed to seeing that the economy comes out of recession and you are definitely a partner in this mission that we set out to do for the nation.”
He also spoke about Niger Delta Bureau, promising that he would ensure the resuscitation of the bureau and make use of it in the areas of grassroots news gathering and information as well as other relevant areas.
According to him, “We will support the bureau to see it comes back active and see to the purpose it was set up for. NNPC will use the bureau in grassroots news and information gathering, especially in the area of pipeline vandalism and with the difficulties we have with the transporters moving petroleum products.
“The pipelines have to be back, have to be running so that should the transporters, for any reason, not being able to move these products, we can at least move them to various points across the country,” he said.