Hopeful Expansion of Crude Oil Exports from Nigeria

The Nigerian government in conjunction with the National Oil Company of Kenya (NOCK) hopes to expand crude oil exports to other Sub-Saharan African countries. NOCK has invited international companies to submit bids for transporting (lifting) crude oil from Nigeria. NOCK said in tender documents that interested international crude oil traders who have a gross turnover of $200 million annually should submit bids by April 12. The company secretary, Sumayya Athmani, has stated that the state corporation wants to pre-qualify traders, and award the tender for transporting crude oil that Kenya receives from the Nigerian government. Crude oil contracts between Kenya and Nigeria are handled by the NOCK and the Nigerian National Petroleum Corporation (NNPC). The company policy on this deal is that traders interested in transporting crude oil that Kenya gets under government-to-government contracts must provide proof of a monthly trade financing capacity of minimum $60 million. Bidders are expected to show proof of international oil and gas trading as well as capacity to provide performance bond of the value of the contracted estimated at $1 million per year.