By Bisola Adeyemo
Not less than 16 consortia have been selected by the Nigerian National Petroleum Corporation (NNPC) for its new crude-for-fuel swap contracts within a year starting in August.
A report on Wednesday by Reuters listed the consortia to include major Swiss trading firms, Trafigura, Vitol and Mercuria, oil major Total as well as large Nigerian traders, Sahara Energy, Oando and MRS Oil.
Other companies which qualified for the contracts, according to a list sighted by Thisday include AY Mai Kifi, based in Kano; Litasco, a South African firm; Bono Energy, Lagos; Duke Oil, an NNPC subsidiary; Eyrie Energy, based in Abuja; Asian Energy Services; Prudent; BP and Mooch.
The contracts, known as Direct Sale, Direct Purchase (DSDP), are coveted since they are used to supply nearly all of Nigeria’s petrol needs as well as cover some of its diesel and jet fuel consumption.
The companies were invited last Friday to submit commercial bids, which were due on Tuesday, according to the report.
Those involved in the process said the list of winners was unlikely to change substantially, with the new DSDPs expected to replace those from 2019, which were extended until mid-2021.
Meanwhile, oil prices rose yesterday on signs of a speedy economic recovery and upbeat forecasts for energy demand supported by vaccinations against COVID-19 although waves of infections in India and Brazil curbed gains.
Brent crude climbed 83 cents, or 1.2 per cent to $69.38 a barrel, earlier in the day, with West Texas Intermediate U.S. crude rising 86 cents, or 1.3 per cent, to $66.14.
As at yesterday evening, prices of Brent had hit $69.86, a few cents shy of the much expected $70 while WTI was at $66.56.
It coincided with a monthly report published by the International Energy Agency (IEA), which noted that demand for oil will exceed the output of top producers.