NNPC replaces Offshore Processing Arrangement with Direct Sale of Crude Oil -Direct Purchase of Products (DSDP)

In a major steer designed to enshrine transparency and eliminate the
activities of middlemen in the crude oil exchange for product matrix, the
Management of the Nigerian National Petroleum Corporation, NNPC on Tuesday
announced the replacement of the Offshore Processing Arrangement, OPA option in
preference for the more efficient Direct Sale-Direct Purchase (DSDP) alternative
which allows for the direct sale of crude oil by NNPC as well as direct
purchase of petroleum products from credible international Refineries.

The NNPC in a release explained that it came to this informed position
after the evaluation exercise of pre-qualified bidders revealed that most of
the 44 companies earlier shortlisted for the next stage of the tender process
only had affiliations to refineries abroad a situation which introduces toll on
the value chain.

The Corporation stated that if allowed to subsist, the development would
in turn constitute a significant value loss to the Federation by way of accruals.

“In this regard, only bona fide owners of Refineries identified in the
ongoing OPA Tender Evaluation process will be further engaged. The identified
Refineries will be subjected to due diligence and analysis by NNPC appointed consultants
to confirm suitability in line with International best practice,’’ the Corporation
said.

The NNPC noted that the call for commercial bids issued to the 44
shortlisted bidders made up of 34 international firms and 10 indigenous
companies have been withdrawn.