Page 18 - DMEA Week 49

DMEA FUELS DMEA

NNPC opens tender for fuel

supplies

NIGERIA NIGERIA’S state-owned NNPC has opened Bidders must show they can meet various
a tender for fuel supplies under its direct sale, standards, including audited accounts and min-
Nigeria exchanges its direct purchase (DSDP) mechanism. imum turnover thresholds, NNPC said, and
crude oil with trading The national oil company has been acquir- they must also comply with Nigerian content
firms and refiners for ing its fuel imports since 2016 under the DSDP requirements.
petroleum products. arrangement, which involves the exchange of NNPC’s managing director Mele Kyari
its crude oil with trading firms and refiners for recently praised the DSDP mechanism, estimat-
petroleum products. ing that it had saved Nigeria some $1bn since its
Under the new tender, NNPC said it would introduction four years ago. Previously Nigeria
offer monthly supplies of crude oil on a free- relied on “offshore processing agreements,” criti-
on-board basis over the course of 12 months. cised for their lack of transparency and high cost.
In return, it expects products to be supplied on NNPC intends to continue using the mecha-
a delivered at place (DAP) basis to designated nism until at least 2023, when it is hoped that the
ports in Nigeria. The fuel should be equivalent 650,000 barrel per day (bpd) Dangote refinery in
in value to the crude oil. Lekki will be up and running, covering Nigeria’s
Companies must register their interest by fuel needs.
December 22 to take part in the DSDP process The company awarded the last round of
in 2020-2021. Documents should be filed by Jan- DSDP contracts in August last year and the deals
uary 21. were due to expire in September 2020 but were
Foreign refinery owners able to process Nige- extended for a further six months. Some 130
rian oil and with a Nigerian affiliate or subsidiary companies took part in that contest, but only
will be able to participate in the tender. So too 15 bids were accepted. The winners included
will globally established traders, likewise with BP, Vitol, Gunvor and Trafigura, as well as local
Nigerian affiliates or subsidiaries. Lastly, domes- firms such as Sahara Energy and MRS Oil and
tic companies working in the downstream sector Gas. NNPC’s own Duke Oil subsidiary also won
and with trading expertise can also take part. a contract.™

ADNOC launches oil product trading

UAE ABU Dhabi’s state-owned ADNOC has countries, giving it access to storage in some of
launched a second trading arm focused on its key export markets in the Asia-Pacific region,
ADNOC wants a share refined products, as it looks to establish new rev- Africa and Europe, in addition to its main stor-
of a market that has enue streams. age hub in the UAE port of Fujairah.
been traditionally ADNOC has a 65% interest in ADNOC Combined, VTTI’s facilities can store around
dominated by Global Trading (AGT), while Italy’s Eni has 60mn barrels of crude oil and refined products.
trading companies 20% and Austria’s OMV a further 15%. The ADNOC joins a number of other Gulf pro-
and internatonal oil joint venture has begun operating in the Abu ducers that have established trading units in
companies. Dhabi Global Market, the UAE’s main financial recent years, to gain a share of market that has
centre. traditionally been dominated by oil trading and
AGT will offer a broader range of integrated international oil companies (IOCs). Diversifying
services to its customers, with new delivery, pric- into trading is one of the key targets in ADNOC’s
ing and hedging options, ADNOC said. Its teams long-term strategy. The company produces some
will trade light and middle distillates, including 40mn tonnes per year (tpy) of refined prod-
jet fuel, naphtha, diesel and gasoline, as well as ucts and petrochemicals, and is working on an
speciality products, from ADNOC’s 817,000 bpd expansion project at its Ruwais complex.
Ruwais refinery. AGT’s launch comes just months after a new
AGT will take advantage of ADNOC’s sub- oil-focused trading division, ADNOC Trad-
stantial storage capacity in the UAE, Japan and ing, made its first trade on September 30. The
India and elsewhere. Last year the national two subsidiaries will work together to “ensure
oil company (NOC) acquired a 10% stake in non-system feedstock supplies to the Ruwais
VTTI, the owner of 15 storage terminals in 14 refinery.” ™

P18 www. NEWSBASE .com Week 49 10•December•2020