NNPC Issues Letters Of Award To 34 Organizations For Oil Swap Deal

Must Read

2020 Brand Africa 100: These are the 10 most admired brands in Africa

NIKE RETAINS #1 IN AFRICA FOR THIRD YEAR IN A ROW AFRICAN BRANDS DROP BY OVER 60% IN...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

Top 10 Most Expensive Universities In Nigeria

For many Nigerians, high-quality higher education is a luxury. There are many private universities who are known not only...
NNPC Issues Letters Of Award To 34 Organizations For Oil Swap DealNNPC Issues Letters Of Award To 34 Organizations For Oil Swap Deal

The Nigerian National Petroleum Corporation (NNPC) recently circulated award reports to oil firms for the extremely sought-after contracts to exchange crude oil for imported fuel.

Under the new contract that will take effect this month, a total of 15 groupings, with at least 34 companies in total, received award letters, four sources with knowledge of the deals said.

The winning groups include: BP/Aym Shafa; Vitol/Varo; Trafigura/AA Rano; MRS; Oando/Cepsa; Bono/Akleen/Amazon/Eterna; Eyrie/Masters/Cassiva/Asean Group; Mercuria/Barbedos/Petrogas/Rainoil; UTM/Levene/Matrix/Petra Atlantic; TOTSA; Duke Oil; Sahara; Gunvor/Maikifi; Litasco /Brittania-U; and Mocoh/Mocoh Nigeria.

NNPC’s crude swap deals, which were previously referred to as offshore crude oil processing agreements (OPAs) and crude-for-products exchange arrangements, are now known as Direct Sale-Direct Purchase Agreements (DSDP).

- Advertisement -

Under the deals, the NNPC supplies crude oil to selected local and international oil traders and refineries in exchange for petrol and diesel.

NNPC had in May 2017, signed the deals with local and international traders to exchange about 330,000 barrels per day (bpd) of crude oil for imported petrol and diesel, as part of measures to sustain the supply of petroleum products across the country.

However, the deals, which expired by the end of July 2018, were extended until the end of 2018.

The state-run oil firm later extended the $6 billion oil swap deals by another six months to June 2019.

Read Also:  Nigerian Breweries Reports Reduced Profits for First Three Months of 2020
- Advertisement -

Reuters reported that while the contracts have not yet been signed, that is largely a formality as the terms have been negotiated, the sources said, and the list of companies is unlikely to change.

NNPC spokesman, Mr Ndu Ughamadu, when reached by Reuters for comment, said he would seek verification of the news.

The number of winners is an expansion on the previous list, which had 10 pairings with a total of 22 companies.

Oil companies work hard to get on the list, which gives them coveted, and potentially lucrative, access to Nigeria’s crude oil cargoes.

- Advertisement -

NNPC extended the previous contracts at least twice as the country focused on elections in February.

The swap deals have supplied virtually all of Nigeria’s petrol for the past two years, as capped prices mean that other would-be importers cannot make money bringing the fuel into the country.

Nigeria, with a population of some 190 million, consumes close to 40 million litres per day of petrol and is easily the largest fuel market in West Africa.

Read Also:  Saudi Attack And Oil Prices: How High Can Crude Oil Prices Climb?

While NNPC has refineries with a combined nameplate capacity of 445,000 barrels per day, decades without regular maintenance or investment leaves the nation almost wholly reliant on imports.

- Advertisement -
NNPC Issues Letters Of Award To 34 Organizations For Oil Swap DealNNPC Issues Letters Of Award To 34 Organizations For Oil Swap Deal

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

NNPC Issues Letters Of Award To 34 Organizations For Oil Swap DealNNPC Issues Letters Of Award To 34 Organizations For Oil Swap Deal

Latest News

Southco Releases New Display Mount Series Designed for Static Applications

HONG KONG, CHINA - Media OutReach - 28 May 2020 - Southco Asia Ltd., a subsidiary of Southco Inc., a leading global provider of...

GEODIS Supports Rising Medical Company LabMed To Supply Health Protection Goods to Europe And North America

SINGAPORE - Media OutReach - 28 May 2020 - The Singapore based enterprise LabMed has entrusted global logistics company GEODIS to support the company's growing activity in...

AI and Data Platform, SENTIENT.IO closed Series A Round led by Japanese digital media enterprises

SINGAPORE - Media OutReach - 27 May 2020 - Sentient.io, AI (artificial intelligence) and Data Platform backed by the national technology research institution in Singapore, A*STAR and...

Trend Micro Research Finds Trust Lacking Within the Cybercriminal Underground

Report details changing tactics and global demand for new malicious services like Deepfake ransomware and AI bots HONG KONG, CHINA - Media OutReach - 27 May 2020 - Trend...

Nigeria: Transport fare Within City Soared By 8.21% in April – NBS

In its Transport fare Watch report for April 2020 on Wednesday, the National Bureau of Statistics (NBS) said the average fare paid by commuters...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -NNPC Issues Letters Of Award To 34 Organizations For Oil Swap DealNNPC Issues Letters Of Award To 34 Organizations For Oil Swap Deal