The Nigerian National Petroleum Corporation (NNPC) has launched the tender process for fuel supplies to designated ports in the country in 2021.
The process will be carried out under the Direct Sale-Direct Purchase (DSDP) mechanism. The DSDP process began in 2016 and it is to run until 2023.
The contract is to run for twelve (12) months and it is for the provision of monthly crude oil Free on Board (FOB) cargoes to suppliers, who will in return provide petroleum products.
Interested companies are to register their interest by December 22nd at 12 noon for the 2020-21 DSDP process. Documents are to be submitted by January 21st 2021. The bids will be carried out online.
The products will be on a Delivered at Place (DAP) basis, to designated ports in Nigeria, and the fuel shall be the equivalent of the value of crude oil received from the National Oil Company.
The bidders must have the following:
- audited accounts
- minimum turnover thresholds
- meet Nigerian content requirements
Foreign refinery owners capable of processing Nigerian crudes, with a Nigerian affiliate or subsidiary; Globally established traders, with Nigerian affiliates or subsidiaries; and indigenous companies working in the downstream with trading expertise, are all eligible for participation in the bid process.
The last round of DSDP contracts that attracted around 130 companies submitting bids was in 2019, which saw fifteen winning bids accepted. Although the last round of DSDP ran from August 2019 until September 2020, the 2019-20 DSP awards were extended by six (6) months.
