NNPC Extends Crude Oil Swap Contracts Until End Of 2018
As you already know, Nigeria’s existing refineries produce little to no petroleum products. As a result, the country is forced to import refined petroleum products from overseas.
The situation costs Nigeria billions of scarce foreign exchange in import revenue. So, to deal with the situation, the Nigeria National Petroleum Corporation, NNPC entered a crude swap deal with some crude refiners abroad to supply Nigeria much-needed petroleum products in exchange for crude oil.
The contract has been running for the past five years although it was always subject to periodic review.
Now, the contract dubbed direct sale, direct purchase agreements (DSDP), were due to expire at the end of June 2018 but NNPC has decided to roll it over by six months until the end of the year.
“We have rolled it over until the end of December,” NNPC Group Managing Director, Maikanti Baru told Reuters on Thursday on the sidelines of the OPEC seminar in Vienna, Austria.
The contract, valued at $6 billion was entered with 10 companies in May 2017, in exchange for 300,000 barrels per day (b/d) of crude for imported petrol and diesel.
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