All eyes on NNPC DSDP deals

Still on the Nigerian oil and gas industry, all eyes are on the soon announcement of the names of companies that won the NNPC’s direct sale direct purchase (DSDP) contracts for this year. The names of the winners should have been announced since March but the NNPC has delayed the announcement for no obvious reason which has raised questions in the industry. Even though some names have appeared in the media as having won the contracts, the NNPC is yet to officially announce the winners, with some our sources telling “Heard on the Street” that the NNPC is delaying the official announcement because it is yet to finalise the signing of contracts with all the winners.

The DSDP contracts, which NNPC introduced to replace its controversial swap contracts is considered quite lucrative, hence the keen interest in those who win the contracts. Even though the DSDP contracts are considered more transparent than the swap contracts which it replaced, sources are still questioning the mode of selection of the winners as some complain that the winners were selected by senior government officials in the Presidency.

But other sources have also told “Heard on the Street” that the winners were selected purely based on their capacity because of how complicated the DSDP contracts and the fact that the suppliers must be absolutely dependable to supply the refined products for which they have been given crude oil.
The contracts will see the companies given about 300,000 of crude oil daily in exchange for refined products.