Nigeria seeks bidders for annual oil contracts

By Emma Farge

GENEVA, March 26 (Reuters) - Africa's top oil producer Nigeria has opened a tender process to sell its oil via multi-billion dollar annual term contracts beginning in June, an official notice showed.

State-owned Nigerian National Petroleum Corporation (NNPC) invited refiners, trading houses and local Nigerian oil companies to submit bids by April 5, according to the notice.

The notice did not specify the volume of oil to be awarded in the 2012 contracts. NNPC said it planned to maintain "regional balance" in the distribution of oil to Africa, Europe, Asia and North and South America.

OPEC member Nigeria is under pressure to fight oil industry corruption after strikes and protests in January, sparked by a hike in state-subsidised petrol prices.

The document said applicants must provide evidence of at least 10 years' experience in the industry in what oil traders said might be a measure to limit cronyism.

It also said firms must have an annual turnover of $600 million and be able to pay a $5 million deposit before buying the first oil cargo.

"The requirements are strict. The idea is perhaps to reduce the number of companies involved," said an oil trader involved in the tender process.

Last year many little known African companies were awarded contracts.

The trader added NNPC officials had signalled this year's list of winners would be trimmed by a third. An NNPC spokesman could not immediately be reached for comment.

Nigeria is exceptional among oil producers as its largest term buyers are international trading houses, not oil refiners.

In 2011, Nigeria awarded around 1.5 million barrels per day (bpd) or more than half its oil production, w ith the three biggest contracts of 60,000 bpd given to oil trading giants Vitol, Trafigura and Glencore.

Nigeria produces an average of around 2.5 million bpd of crude oil and light gas liquids. (Editing by James Jukwey)

Nigeria's President congratulates Senegalese President-elect

PANA

Nigeria's President Goodluck Jonathan Monday congratulated Senegal's President-Elect Macky Sall, a day after he won a runoff against incumbent President Abdoulaye Wade.

In a statement signed by his spokesman, President Jonathan, who is currently attending the ongoing Nuclear Security Summit (NSS) in Seoul, South Korea, described Mr. Sall's election as “victory for democracy and just reward for all Senegalese people who kept faith in the democratic process and voted responsibly in what has proved to be a watershed election''.

He said the Senegalese people have confirmed that ''theirs is a mature democracy built on freedom and respect for rules and laws''.

“If there was ever any doubt, this election has proved that the foundation of Senegalese democracy is rock solid. This is good for the Senegalese people and also for our sub-region, especially at a time one of our brother countries is facing grave challenges to constitutional order," President Jonathan said.

Saying he looks forward to working with him, he observed that Sall's "commitment to democracy and remarkable leadership and doggedness in the face of great odds are proof that he is the right person to heal wounds, unite the country and lead Senegal along the path of peace, equity and prosperity".

The Nigerian leader also commended incumbent President Wade “for graciously accepting defeat, showing great maturity and statesmanship and organizing an election that was adjudged free and fair, (and) whose outcome he has accepted.”

Jonathan recommended Wade's example to all other leaders on the African continent.

Nigerian govt issues ultimatum to foreign airlines on fares (correcting fine imposed on BA, VA)

Lagos, Nigeria (PANA) - Nigeria's federal government has given all foreign airlines operating in the country a 30-day ultimatum to end the discriminatory practice that sees Nigerian passengers paying higher fares than other passengers in West Africa.

According to local media reports Monday, Aviation Minister Stella Oduah issued the ultimatum in the capital city of Abuja Sunday, saying it would start counting from Monday (26Mar).

She said any international airline operating in Nigeria which failed to dismantle the fare imbalance and other sharp practices within the next 30 days would be banned from operating in the country.

In the wake of the impasse between British Airways and Nigeria's Arik Air over the denial of landing slots of the latter at London Heathrow airport, the ministry had also raised concern over the huge fare disparity in the sub-region and demanded fare parity from British Airways (BA), Virgin Atlantic (VA) and other international airlines operating in the country.

“We are seriously concerned and worried by the reluctance to restore parity within the region by the foreign airlines. They have been using all kinds of delay tactics; this is unacceptable and will no longer be tolerated.

''Nigerian passengers do not deserve this kind of exploitation and we are willing and ready to stand up to their rights,” she said.

Ms. Oduah said Nigeria remained an important and lucrative route for the international airlines, warning that any airline that is not ready to treat Nigerians with equity and dignity would be barred from operating in the country.

”In the interim, we encourage Nigerian travellers to avail themselves of other competitive alternatives while we try try to address and resolve this issue once and for all,” she said.

PANA reports that a one-way, first class fare along the Lagos-London route is US$5,408, whereas the same booking for a passenger on the Accra-London route is US$2,399.

Also, a one-way, business class fare on the Lagos-London route is US$3,685, compared to the US$2,049 on the same booking on the Accra-London route.

Last year, Nigeria's federal government slammed a fine of US$235 million on BA and VA for alleged price-fixing on the Nigeria-UK route, but the fine was later overturned on appeal.
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