Fast growing indigenous oil marketing and trading firm, Mainland Oil and Gas Company Limited, has successfully secured a space in the 2021-2022 fuel import arrangement that would see Nigeria’s social and economic activities well energized as the country awaits full recovery of local refining.
Nigerian National Petroleum Corporation (NNPC) is running parallel programme to revamp its three refining companies that operate four plants with cumulative capacity for processing 445,000 barrels of crude oil per day.
While the refinery rehabilitation programme runs, crude oil allocation originally mapped for them would now be processed offshore under arrangements between the corporation and private trading companies that would deliver determined volumes of refined products in exchange for the crude oil.
In the new contracts rolled out under the Direct Sales and Direct Purchase (DSDP), NNPC has called up Mainland Oil, Duke Oil and 42 other companies to deliver full fuel value from the crude oil allocations due for the local refineries in the next one year.
The DSDP term contracts are usually rolled on annual basis, and renewed in line with transparent bid processes.
In the prevailing 2021-2022 contracts, Mainland Oil forms part of the 16 consortiums comprising 44 companies that would ship out crude for refining and subsequently importing commensurate value of refined products for domestic supplies.
As part of its establishment mandate, NNPC is expected to guarantee adequate volumes of all specifications of fuel products to power the domestic economy. And with over 13 different strategic business units, the corporation lures private partners with commercial opportunities that ultimately contribute to delivery of adequate fuel supplies to the market.
From the traditional crude for products swap deals, the corporation’s strategies for deriving value from allocated crude oil have morphed to the DSDP arrangement with trusted hands in energy supplies and logistics factors in the maritime industry.
Managing Director of Mainland Oil and Gas Company Limited, Dr, Chris Igwe, had earlier told our correspondent The broader business sphere of Mainland Oil and Gas Company Limited straddles fuel marketing, trading, storage, shipping and ancillary products manufacturing, including production of lubricants.
He declared that Mainland Oil was laying solid structures to enable it take greater roles in meeting the domestic energy needs of the country. He lauded the current management of NNPC for driving convincing processes for resource accountability through enhanced transparency, broader inclusiveness and open processes.
In the 2021-2022 DSDP, Mainland is in consortium with MOCOH, PANERO and STOPGAP. Other consortiums in the DSDP programme include: Oando/CEPSA consortium; AY MAIKIFI/Britannia -U/Emadeb/Hyde consortium; Trafigura/AA Rano consortium; Utasco/PV Oil/Overbrook/Northwest consortium; and Bono/Century/Amazon/Cordero consortium.
Also in the list are BP/AYM Shafa consortium; Eyrie/Levene/Bovas/Dk Global; Mercuria/Barbedos/Rainoil/Petrogas consortium; Asian/Masters/Casiva/Cimaron consortium; and Prudent/Utm/Matrix/Petra Atlantic consortium.
Companies that made the list as sole contractors to the NNPC are MRS Oil; Sahara Energy; Duke Oil Incorporated, a unit of NNPC; Total; and Vitol.