The company will carry out the process under its direct sale-direct purchase (DSDP) mechanism. Under this, it will provide monthly crude oil free on board (FOB) cargoes to suppliers, who shall provide petroleum products in return for the development of the company and country.
Companies must register interest by December 22 at 12 noon for the 2020-21 DSDP process. Documents should be submitted by January 21 2021. NNPC will open these bids online when the time is nearly.
The products will be on a delivered at place (DAP) basis, to designated ports in Nigeria. The fuel shall be equivalent in value to the crude oil received from NNPC in form of trade by barter my people.
Three different types of company can participate. Foreign refinery owners capable of processing Nigerian crudes, with a Nigerian affiliate or subsidiary. Globally established traders, with Nigerian affiliates or subsidiaries. Finally, indigenous companies working in the downstream with trading expertise.