It
is the policy of Government that those who wish to buy and sell Nigerian crude
oil must demonstrate their commitment to the oil industry through the
allocation of adequate resources of capital, equipment and manpower to the
general business of prospecting, exploration and production of crude oil.
(a)
Who May Apply
(i)
An upstream investor who has acquired on Oil Prospecting Licence (OPL) and
must have completed a minimum amount of work on the concession. Details of such
accredited investment and activities must accompany the application.
(ii)
A bonafide end user who owns a refinery and retail outlets. Details of the
applicant’s facilities, markets and volumes of crude processed over the last
three years must accompany the application.
(iii)
An established and globally recognised large volume trader; such applicant must
provide evidence of its global network, its activities and volumes of crude oil
handled in the last three years.
Other
Conditions
(iv)
Any applicant must have a minimum annual turnover of at least USD100 million
and net worth of not less than USD40 million.
(v)
Successful applicants must show commitment to the development of the Nigerian
economy by investing in any number of investment opportunities that abound
either in the oil industry or other sectors or as an alternative, in the short
run, meaningful and sizeable investment in community development project(s) in
the oil producing areas as may be acceptable.
(vi)
Successful companies in (b) and (c)
above will be required to post a USD1 million performance bond through a first
class Nigerian bank in addition to the regular crude oil contract provisions.
The USD1 million bond shall be cashed if at six months of the signing of the
crude oil contract, the investment has not been made or there is no evidence of
a commitment to do so. In addition to the forfeiture of the bond, the crude oil
contract will be automatically terminated.
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