Bloomberg News

Nigeria Extends Closing of Tender to Sell Crude for One Year

April 27, 2012

Nigerian National Petroleum Corp. said it extended the closing date and amended terms for bids in its tender to sell crude oil for one year starting from June.

NNPC, as the state-run company is known, will accept bids until May 11, it said today in an e-mailed statement, compared with a previous close of April 5. NNPC didn’t disclose the amount or type of crude being offered for sale.

The company also relaxed conditions on potential buyers, requiring them to have a minimum annual revenue of $500 million and a net worth of at least $100 million, compared with earlier thresholds of $600 million and $300 million, respectively. Buyers are also now required to include a plan in their bids that include insurance and legal, banking and finance as well as cargo inspection that will be subcontracted to Nigerian firms.

Successful bidders must show commitment to develop the economy of Africa’s most populous nation with more than 160 million people by investing in industries including oil exploration, refineries, power plants, solid minerals and agriculture, according to the statement.

All tenders received before the earlier close of April 5 remain valid, NNPC said. Buyers who want to change their bids in line with the new terms can do so, according to the statement.

Nigeria is Africa’s top crude producer and the fifth- biggest source of U.S. imports. At least 90 percent of the country’s oil is pumped by Royal Dutch Shell Plc (RDSA), Exxon Mobil Corp. (XOM:US), Chevron Corp. (CVX:US), Total SA (FP) and Eni SpA (ENI) in joint ventures with the NNPC.

To contact the reporter on this story: Elisha Bala-Gbogbo in Abuja at ebalagbogbo@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu in Abuja at dmbachu@bloomberg.net


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