Nigerian National Petroleum Corporation, NNPC, will begin selling its oil via annual term contracts beginning in June. An official notice issued by the NNPC said that it has opened a tender process to sell its oil under multi-billion dollar annual term contracts.
The corporation has invited refiners, trading houses, and local oil companies to submit bids by April 5 2012. The notice did not specify the volume of oil to be awarded in the 2012 contracts. NNPC said it planned to maintain “regional balance” in the distribution of oil to
Africa, Europe, and Asia as well as North and South America.
Companies responding to the tender must have an annual turnover of $600 million and be able to pay a $5 million deposit before buying the first oil cargo.