DSDP: Nigeria Saves $500m From Oil Product Sales, Opens 128 BidsDSDP: Nigerian Government Saves $500m From Oil Product Sales, Opens 128 Bids

DSDP: Nigeria Saves $500m From Oil Product Sales, Opens 128 Bids

The Nigeria National Petroleum Corporation Group Managing Director, Maikanti Baru said the corporation saved $500m (N152.4bn) from oil products sales at the opening of bid for the Direct Sale Direct Purchase (DSDP) at the NNPC Towers in Abuja.

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Nigerian Government Saves N152.4bn From Oil Product Sales using DSDP

  • Opens 128 Bids

The Nigeria National Petroleum Corporation Group Managing Director, Maikanti Baru said the corporation saved $500m (N152.4bn) from oil products sales at the opening of bid for the Direct Sale Direct Purchase (DSDP) at the NNPC Towers in Abuja.

DSDP is a model, introduced in 2016 was carried out by direct sales of crude oil to refiners or consultants who then supply NNPC with equivalent worth of products.

Domestic and International Oil and Gas companies totalling 128 chose to participate in the 2017 DSDP programme.

The batch over which the bids were opened is planned to last for the next one year, starting from April 1.

“The DSDP programme has also recorded significant cost savings of over half a billion dollars through major reduction in the amount we paid for both demurrage and the product themselves.

It ensures that the supplies from refineries are fully augmented to meet the national supply as well as a sustained over 30 days sufficiency particularly with petrol.

The programme is very transparent and the major instruments on the partnership between the NNPC and the product supplies both local and international, we have as part of this programme.”

During an interview with journalists on the sideline of the bidding process, the GMD said the physical presence of the bidder in Nigeria is a requirement.

“That means they must have depots or retail outlets as a minimum or they must be involved with exploration or production of crude oil.

“So we will ensure that most of them are domiciled here in Nigeria. This year’s programme for DSDP is about 800, 000 barrels at most.”

Tenders will be based on West African quality specifications and the latest which is 50 per cent of sulphur content will be maintained.

The NNPC saved a billion dollars from the DSDP programme in 2016.

 

 

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