Energy
Oando, others get NNPC’s oil swap contracts worth $6bn
By Odunewu Segun
Some major Nigerian oil companies, including Oando and AA Rano have secured oil swap contracts with the Nigerian National Petroleum Corporation (NNPC) put at a staggering $6bn for the next six months, National Daily has learnt.
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).
Recall that 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.
According to findings by National Daily, each of the 10 oil traders/refineries partnered local Nigerian companies to win 33,000 barrels per day allocations.
Unlike the 2016 contracts, which included only companies with refineries so as to cut out middlemen, the beneficiaries of 2017 contracts include international trading houses, and not just refineries.
Some of the companies that benefitted include Varo Energy, Societe Ivorienne de Raffinage (SIR), Total and Cepsa.
According to the list, Trafigura partnered AA Rano to clinch 33,000 barrels per day; Petrocam paired with Rainoil and Falcon Crest to win 33,000 bpd; Mocoh partnered Heyden Petroleum to get 33,000 bpd; Cepsa paired with Oando to win 33,000 bpd; while Sahara is partnering Societe Ivorienne de Raffinage (SIR) for 33,000 bpd.
Five other groups that also got 33,000 bpd each include: Mercuria and Matrix/Rahamanniya; Socar and Hyde; Litaso and MRS; Vitol and Varo; and Total, which is partnering its Nigerian subsidiary.
The Group Managing Director of the NNPC, Dr. Maikanti Baru who announced the contracts explained that the deals, which are due to expire by the end of this month, have been extended until the end of this year.
“We have rolled it over until the end of December,” Baru said on the side-lines of the OPEC seminar in Vienna.
Health5 days agoThe Pfizer Papers: An exposé on COVID-19 vaccine trials, consequences
Sports1 week agoFatodu tasks state actors on schools sport devt as Desmond unveils Gbajabiamila U-16 football competition for Surulere Secondary Schools teams
Energy1 week agoReps member canvasses safety education for electricity consumers
Crime3 days agoEFCC pushes for in-absentia trial of Yahaya Bello amid N80bn fraud case
Crime2 days agoAbducted female doctor regains freedom after ten months in captivity
Business6 days agoExperts warn of safety risks as another CNG vehicle goes up in flames
News1 day agoReps seek to block renaming of Niger Delta Ministry amid controversy
Business1 week agoNaira gains modest ground against dollar amid economic turmoil