NNPC Cancels Shady Crude Oil Delivery Deals

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Group-Managing-Director-NNPC-Dr.-Ibe-Kachikwu-360x333
NNPC Group Managing Director, Dr. Ibe Kachikwu. Photo Credit: Punch NG.

The Nigerian National Petroleum Corporation (NNPC) has cancelled contracts for supply of oil to refineries in order to boost its operational efficiency.

The NNPC General Manager, Group Public Affairs Division, Ohi Alegbe made this known in a statement issued in Abuja yesterday, saying the new measures will strengthen the corporation and improve its value chain.

He added that the measures taken to cancel the contracts were taken after proper evaluation in line with the terms of contract for delivery of crude oil to the nation’s refineries in Warri, Port Harcourt and Kaduna; after which the corporation cancelled the current contract due to exorbitant cost and inappropriate process of engagement.

Alegbe said, “We have also commenced a rigorous and transparent process of securing capable and competitive contractors for the delivery of crude oil by marine vessels to Port Harcourt and Warri/Kaduna refineries, pending the restoration of the crude pipeline infrastructure.”

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The NNPC statement released explained that it resorted to the delivery of crude oil to the refineries by marine vessels following incessant vandalization of the Bonny-Port Harcourt refinery pipeline and the Escravos crude pipelines, which resulted in complete unavailability of the pipelines in 2013.

“However, after detailed appraisal of the operation and its terms of agreement, the NNPC is convinced that the current Offshore Processing Agreements (OPA) is skewed in favour of the companies such that the value of product delivered is significantly lower than the equivalent crude oil allocated for the programme,” Alegbe added.

See Also: More Heads Will Keep Rolling In NNPC Till Sanity Is Achieved – Kachikwu


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