Not less than 224 local and foreign firms have submitted bids for the purchase and sale of Nigeria’s crude oil.
Speaking at the opening ceremony for the sale and purchase of the crude oil grades in Abuja, the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, explained that the 224 firms had indicated interest to trade about 700,000 barrels per day of various grades of Nigeria’s crude for the 2016/2017 fiscal year.
The NNPC boss explained that the number of bidders dropped from 278 companies in 2015/2016 to 224 currently, pointing out that this was due to the strengthening of the criteria for the prospecting companies, adding that the tender process would be concluded by February next year.
He said: “There have been speculations that we are struggling for market. That is not true. Nigeria’s crude grades have continued to earn premiums and they are hot cakes all over for refiners. Because of the light nature of the crude, it induces very high yields on the valuable products that you produce from our crude oil. Nigeria’s crude grades continue to maintain market”.
He added: “In fact, contrary to a lot of speculation that a lot of Nigeria’s crude goes to China, they do not. Most of them are consumed and refined in India and Europe, particularly, last year and this year, most of Nigeria’s crude ended up in European refineries.”