The Nigerian National Petroleum Company Limited (NNPCL) has invited interested insurance brokers registered in Nigeria, to bid as brokers for its oil and non-oil assets and liabilities insurance program for the 2024/2025 period.
A statement by the company released on its X handle on Thursday said interested brokers should ensure that all submissions are completed electronically via the NIPEX Tender Portal on or before 12:00 noon on Monday, 13 November 2023.
It noted that comprehensive details, eligibility criteria, and submission guidelines are available on its official website.
“Bidders who have submitted their bids and external observers shall be invited to attend the virtual live-stream bid opening session,” it said.
The company said the contract for the insurance of its oil and non-oil assets and liabilities shall be awarded to the successful bidder(s) for a period of 12 months.
“There shall be a consolidated insurance policy to include insurance of energy assets such as production platforms, oil wells, refineries, depots, pumping stations, jetties, terminals, gas metering stations, vessels, power plants, buildings, etc. owned, controlled or operated by NNPC Ltd,” it said.
Eligibility Criteria
NNPCL said all interested insurance companies seeking to be considered must satisfy the following eligibility and pre-qualification criteria.
“Be a limited liability company registered with the Corporate Affairs Commission (CAC) in Nigeria and licensed by the National Insurance Commission (NAICOM) to transact general insurance business.”
It added that the companies must have a minimum paid-up capital as approved by NAICOM for the different classes of insurance and must be a good corporate citizen of Nigeria that pays its taxes as at when due.
It must also fulfil all statutory requirements to operate as an Insurer in the Nigerian oil and gas industry.
In submitting for the bid, the NNPCL said the company must have a Certified True Copy of the certificate of incorporation obtained from the CAC within the last twelve months ending November 2023 and a CAC status report generated within 3-months of bid submission.
The company must also submit a Certified True Copy by the National Insurance Commission (NAICOM) of the company’s current Licence as an Insurer to transact general insurance business within the last twelve months ending November 2023.
The company’s published Annual Audited Accounts and Reports for the years ending 2020, 2021 and 2022 must also be submitted with the NAICOM’s approval of Annual Audited Accounts and Returns for the underwriting year ending 31st December 2022.
It said a copy of the Tax Clearance Certificate issued by the Federal Inland Revenue Service for the past three (3) years 2020, 2021, and 2022 (Receipts not acceptable). Certification must be valid up to 31st December 2022.
It added that the company should also submit a certificate of compliance with the provisions of the Pension Reform Act, 2014 issued by the National Pension Commission (PENCOM) expiring not earlier than 31st December 2023.
“Employee Compensation Scheme (ECS) Clearance Certificate as evidence of compliance with the provisions of the Employee Compensation Act 2010 issued by Nigerian Social Insurance Trust Fund expiring not earlier than 31st December 2023 (Receipts not acceptable).
“Evidence of Certificate of compliance with the provisions of Industrial Training Fund (ITF) Act 2011 as issued by the ITF expiring not earlier than 31st December 2023.
“Relevant certificate of registration with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) expiring not earlier than 31st December 2023,” it said.
Similarly, it said the company must submit evidence of good business relationship with competent Re-Insurance broker(s) with relevant
experience in the energy business and access to the international insurance markets.
The NNPCL said documentation/evidence demonstrating experience in similar oil and gas (Exploration and production (E & P) and oil servicing companies only) insurance cover placed in the last 3 years as leader or co-insurer (a minimum of two (2) documentation/evidence is expected).
“Please attach copies of letters of award including client’s company, full contact details (Not P.O.Box), functional phone numbers, and e-mail address and description of re-insurance strategy, including use of rated re-insurance Companies.
“Copy of 2021/2022, 2022/2023, and 2023/2024 signed domestic and/or foreign reinsurance slips for your energy/oil accounts and evidence of payment of 2021/2022, 2022/2023, and 2023/2024 reinsurance premiums for your energy/oil accounts.
“Current and in-place organizational structure. Experience and skills of management and technical personnel with one-page resume provided for each showing companies worked for with dates.
“A prospective bidder shall provide a sworn affidavit to support action,” it added.
The NNPCL noted that all documents for submission must be transmitted with a duly signed covering/forwarding letter by the authorized officer of the firm under the Company/Firm’s letterhead.
The letterhead must bear, amongst others, the names and nationalities of the directors of the company, the registration number (RC) as issued by the Corporate Affairs Commission (CAC), contact address, telephone number (preferably GSM number), and email address.
Source- Premium Times Nigeria.