Page 16 - AfrOil Week 50 2020

AfrOil PROJECTS & COMPANIES AfrOil

NNPC opens tender for fuel supplies

NIGERIA NIGERIA’S state-owned NNPC has opened domestic companies working in the down-
a tender for fuel supplies under its direct sale, stream sector and with trading expertise can
direct purchase (DSDP) mechanism. also take part.
The national oil company (NOC) has been Bidders must show they can meet various
acquiring its fuel imports since 2016 under standards, including audited accounts and
the DSDP arrangement, which involves the minimum turnover thresholds, NNPC said,
exchange of its crude oil with trading firms and and they must also comply with Nigerian con-
refiners for petroleum products. tent requirements.
Under the new tender, NNPC said it would NNPC’s managing director Mele Kyari
offer monthly supplies of crude oil on a free-on- recently praised the DSDP mechanism, estimat-
board (FOB) basis over the course of 12 months. ing that it had saved Nigeria some $1bn since
In return, it expects products to be supplied on its introduction four years ago. Previously Nige-
a delivered at place (DAP) basis to designated ria relied on “offshore processing agreements,”
ports in Nigeria. The fuel should be equivalent criticised for their lack of transparency and high
in value to the crude oil. cost.
Companies must register their interest by NNPC intends to continue using the mecha-
December 22 to take part in the DSDP process nism until at least 2023, when it is hoped that the
in 2020-2021. Documents should be filed by 650,000 barrel per day (bpd) Dangote refinery in
January 21. Lekki will be up and running, covering Nigeria’s
Foreign refinery owners able to process Nige- fuel needs.
rian oil and with a Nigerian affiliate or subsidi- The company awarded the last round of
ary will be able to participate in the tender. So DSDP contracts in August last year and the deals
too will globally established traders; likewise were due to expire in September 2020 but were
with Nigerian affiliates or subsidiaries. Lastly, extended for a further six months. ™

MODEC to operate Sangomar FPSO

SENEGAL JAPAN’S MODEC has signed a contract with
Australia’s Woodside Energy for the operation
and maintenance of a floating production, stor-
age and off-loading (FPSO) unit that will be
installed at RSSD, an oil-bearing block offshore
Senegal.
In a statement dated December 14, MODEC
said the contract would apply to the FPSO that it
will build for the Sangomar Phase 1 Field Devel-
opment project, which targets the Sangomar The RSSD block holds about 645mn barrels of oil equivalent (Image: FAR)
Offshore and Sangomar Offshore Deep fields.
The parties struck a deal on the construction of MODEC published its statement shortly
the vessel in January of this year, and MODEC is after placing an order with MAN Energy Solu-
due to deliver it to Woodside in 2023. tions (Switzerland) for six centrifugal compres-
Under its new contract, MODEC will be sor trains that will be installed on the FPSO.
responsible for operation and maintenance of The Swiss company has agreed to supply two
the FPSO over a period of 10 years, as well as high-pressure compressor trains, three medi-
“all in-country installation and commissioning um-pressure trains and one low-pressure train.
activities,” the statement said. The 10-year term Woodside is serving as the operator of the
will begin once the vessel has been commis- RSSD, which was set up to explore and develop
sioned, and Woodside will have the option to the Sangomar block. The licence area includes
extend the contract “for every year thereafter, the three fields – Rufisque, Sangomar Offshore
up to 10 additional years,” it added. and Sangomar Deep Offshore – that give the
The FPSO will be able to process 100,000 bar- joint venture its name. Oil was discovered at the
rels per day of crude oil, as well as 130mn cubic block in 2014, and RSSD has determined that it
feet (3.68mn cubic metres) per day of associated holds an estimated 645mn barrels of oil equiv-
gas and 145,000 bpd of water for injection wells. alent in recoverable reserves, including 485mn
The vessel will also be able to store at least 1.3mn barrels of crude oil and 160mn boe of natural
barrels of crude. gas. Production is slated to begin in 2023. ™

P16 www. NEWSBASE .com Week 50 16•December•2020