Energy

Oando, others get NNPC’s oil swap contracts worth $6bn

Published

8 years ago

June 22, 2018

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.