Petroleum Corporation (NNPC) has awarded its 2017 crude oil term contracts to 39 companies, the company said on Tuesday. The contracts covering about 1.31 million barrels per day (bpd) of crude oil were awarded to 18 Nigerian companies, 11 international trading houses, five foreign refineries, three national oil companies and two “NNPC Group trading arms,” the firm said in a statement.
NNPC said the contracts, worth a total of more than $72 million per day at Tuesday’s crude prices of around $55.60 per barrel, were each for 32,000 barrels per day (bpd), apart from Duke Oil Ltd, an NNPC Group subsidiary, which was for 90,000 bpd.
The list compared with 27 companies that won contracts of varying sizes for 2016.
OPEC member Nigeria typically produces just over 2 million bpd of crude oil, although its 2016 output was hobbled by militant attacks. China’s Sinopec and India’s Indian Oil Corp were among the winners, as were international firms including the trading arms
of BP and Total and trading houses Litasco and Glencore. Absent from this year’s list were the trading arms of oil majors ExxonMobil, Shell and Eni, trading houses Mercuria and Taleveras and refiner Saras, all of whom were on the 2016 contract list. Vitol’s trading arm was also not on the list,
although, Varo Energy, a joint venture between Vitol and private equity firm Carlyle Group, was.
NNPC head Maikanti Baru said the group had received bids from 224 companies. He said the decision to announce the winners reflected NNPC’s commitment to transparency. “We’ll ensure transparency and fairness in the process,” Baru said in a statement.
Contract holder Volume ('000 bpd) Refiners Hindustan Refinery 32 Varo Energy 32 Sonara Refinery 32 Bharat Petroleum 32 Cepsa 32 International Trading Companies Trafigura 32 ENOC 32 BP Trading 32 Total Trading 32 UCL Petro Energy 32 Mocoh Trading 32 Trevier Petroleum 32 Heritage Oil 32 Levene Energy 32 Glencore 32 Litasco Supply and 32 Trading Government to Government Indian Oil Corp. (India - 32 IOC) Sinopec (China) 32 SacOil (South Africa) 32 Nigerian Companies Oando 32 Sahara Energy Resouce LTD 32 MRS Oil and Gas 32 A.A. Rano Nigeria Limited 32 Bono 32 Masters Energy 32 Hyde Energy 32 Britania-U 32 North West Petroleum 32 Optima Energy 32 AMG Petroenergy 32 Arkleen Oil & Gas Ltd 32 Shoreline Limited 32 Emo Oil 32 Setana Oil 32 Prudent Energy 32 NNPC Trading Companies Calson/Hyson 32 Duke Oil Incorporated 90 Total: 39 1.31 million