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December 05, 2016
Crude Oil Marketing

VISION

COMD shall be a world class marketing company for Crude Oil, NGL, Condensate and Derivatives

MISSION 

Ensure Federation equity determination & disposal for revenue optimization and achieving greater transparency and cost reduction

MANDATE OF CRUDE OIL MARKETING DIVISION (COMD)
  • Sustain/ stabilize FGN/NNPC equity Oil & Gas production

  • Arrest dwindling Oil & Gas revenue, improve Oil & Gas marketing efficiency

  • Ensure maximum programming and lifting of available FGN equity

  • Crude Oil to guarantee uninterrupted cash flow to FGN

  • Respond appropriately to challenges of changing global Oil & Gas market dynamics

  • Prompt collection of Oil & Gas proceeds

  • Ensure Bulk Supply of Petroleum Products to the nation and Remit 100% of cost of Federation Crude Oil to Federation account through DSDP


ACTIVITIES OF CRUDE OIL MARKETING DIVISION (COMD)
  • 1. Monitor industry production, compute and secure gov't entitlement from:

  • • JV operations Equity/CA/MCA
    • Production Sharing Contracts
    • Services Contracts
    • Independent/Marginal fields
  • Develop and Pursue strategies for effective disposal of Nigeria Equity Crude Oil

  • Sell and lift all Govt & NNPC equity Crude oil, Condensate and NGLs volumes each month

  • Ensure timely and full payment for Oil & Gas Sales

  • Optimize Earning from Crude Oil & Gas sales:

  • • Effective Valuation of all crude oil grades
    • Close monitoring of Market performance for appropriate pricing
  • Maintain Industry data on crude oil /NGL production and lifting

  • CRITICAL RECENT ACHIEVEMENTS (OPERATION & SERVICE)

    1. Implementation Of Direct Sales Direct Purchase, DSDP arrangement
    2. $358 million DSDP comparative savings (Feb –Aug 2016)


    SALE AND PURCHASE OF GOVERNMENT EQUITY/NNPC CRUDE OIL AND GAS


    WHAT NNPC DOES

  • NNPC sells Crude Oil, Natural Gas Liquids (Domestic & Export) and LPG mix based on term contract

  • Crude oil-One year

  • Natural Gas Liquids (Domestic & Export) and  LPG mix two (2) years

  • All term contracts/ invitation to tender are advertised in both Foreign and Local media.

  • All prospective Companies wishing to tender for the Sale and Purchase of Nigerian Crude Oil, Natural Gas Liquids (Domestic & Export) and LPG mix shall present relevant documentations as contained in the guidelines as advertised

  • Sale and Purchase of Nigerian Crude Oil, Natural Gas Liquids (Domestic & Export) and LPG mix are subject to Terms and conditions as will be advised in the term sheets and general form of agreement

  • Crude oil, Natural Gas Liquids (Domestic & Export) and LPG mix allocations are done two months ahead of the lifting month

  • Crude Oil, Natural Gas Liquids (Domestic & Export) and LPG mix are only allocated to Term Contract holders

  • The pricing of crude Oil is based on an Average of five (5) days Platts publication of Dated Brent price around the B/L date, plus or minus the Official Selling Price (OSP) for the month as published by NNPC.


WHAT NNPC DOES NOT DO
  • NNPC does not employ the Services of any Agent (s) or third parties for the Sale and Purchase of Nigerian Crude Oil, Natural Gas Liquids (Domestic & Export) and LPG mix

  • NNPC does not introduce or recommend its potential Term contract holders to any third party or Agent (s)

  • NNPC does not have any Off-OPEC Allocation (s)

  • NNPC does not require Companies to pay any money into individual’s Personal/Companies Account (s) or any Account that is not Designated by the Government  for Crude Oil, Natural Gas Liquids (Domestic & Export) and LPG mix

  • NNPC does not issue any Authority to Sell to individuals or Companies

  • Please click here to view list of 2015/2016 off-takers 

OIL FRAUDS
The Nigerian National Petroleum Corporation (NNPC) views with dismay and is constrained yet again to raise the alarm over the renewed spate of attempts by fraudsters to defraud some individuals and organizations through bogus lifting/importation of Nigerian crude/products.

The recent disingenuous efforts have included the forging of shipping documents and the impersonation of top NNPC officials by unscrupulous individuals who parade themselves as either agents or officials of NNPC and have reportedly extorted huge sums of money from unwary Nigerians and foreigners alike for dubious crude oil allocation papers.

The NNPC wishes to state categorically that it neither sells its crude oil through agents nor does it carry out any spot sales. It further wishes to emphasize that there is absolutely nothing like “Presidential”, “Task Force”, “Ministerial”, “Diplomatic” or any other form of special or privileged allocation, which can be peddled by hawkers or anyone. The NNPC has not given any mandate to any person or persons to negotiate the sale of Nigerian Crude oil on its behalf.

The general public is therefore hereby alerted and warned against having any dealings with these “agents” or “officials” or anyone claiming to have access to special allocation. Anybody who is therefore duped through any of these bogus schemes should have himself or herself to blame.
NNPC is working with the Economic and Financial Crimes Commission (EFCC) to track down such fraudsters.
ENQUIRIES:
The Group General Manager
Crude Oil Marketing Division (COMD),
5th Floor, Block B,
NNPC Towers, Herbert Macauley Way,
Business District, Garki, Abuja.
Telephone: +234 9 460 82501