(Ecofin Agency) - The Nigerian National Petroleum Corporation (NNPC) under its direct sale, direct purchase import model has called for tenders for the lifting of crude oil.

According to an NNPC spokesman, the deadline for the submission of bids is February 2 while the program will commence on April 1 and will last for one year.

“To ensure sustainable petroleum product supply across the country, NNPC has called tenders for the lifting of crude oil in return for the delivery and supply petroleum products under the direct sale of crude oil and direct purchase of petroleum products,” the spokesman said not giving further details on the volumes of crude oil NNPC is expecting to place in the tenders.

Nigeria imports around 1 million metric tonnes per month of petroleum products, but the corporation on January 15 announced plans to reduce imports, after the country’s four oil refineries recently resumed operations.

The direct sale, direct purchase import model, where selected foreign refiners are assigned crude oil supplies in return for the delivery of an equal value of gasoline to NNPC, began in 2016, Platts news reports.

This model replaces the Crude Oil Swap initiative and the Offshore Processing Agreements and is aimed at preserving transparency in the crude oil for product transaction by the Corporation in line with global best practices.

Anita Fatunji