NNPC cancels crude oil delivery contract to refineries


AS part of measure to boost operational efficiency, the  Nigerian National Petroleum Corporation (NNPC) has cancelled contracts for supply of  crude oil to refineries.

In a statement issued by General Manager, Group Public Affairs Division, Ohi Alegbe, NNPC explained that the measures would strengthen its value chain.

NNPC explained that  the steps 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.

According to NNPC, as a stop-gap measure, NIDAS Marine Limited, a subsidiary of the NNPC, has been engaged to provide crude delivery service on negotiated industry standard rate pending the establishment of substantive contract.

NNPC 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.”


It explained that it resorted to the delivery of crude oil to the refineries by marine vessels following incessant attacks on the Bonny-Port Harcourt refinery pipeline and the Escravos crude pipelines by vandals and oil thieves, which resulted in complete unavailability of the pipelines in 2013.

NNPC also announced the termination of the Offshore Processing Agreements (OPA) entered into in January 2015 with three companies, namely- Duke Oil Company Inc., Aiteo Energy Resources Limited and Sahara Energy Resources (Nig) Ltd.

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