NNPC extends $6bn oil swap contracts by 6 months

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Ediri Ejoh, with agency report
There are indications that the National Oil Corporation of Nigeria, NNPC, can expand its oil for contracts for petroleum products in the amount of about $ 6 billion. United States for another six months from the end of 2018 to June 2019.

Managing Director of the NNPC group, Dr. Maikanti Baru

According to Reuters, quoting unnamed sources, the Corporation separately holds extensive discussions with some owners of exchange agreements in order to invest in rebuilding its refineries.

Currently, NNPC's oil swap deals, previously called offshore crude oil refining agreements (OPA) and crude oil swap agreements, are now called direct sale and direct purchase agreements (DSDP).

In May 2017, the Corporation signed agreements with local and international traders on the exchange of about 330,000 barrels per day (br.) Crude oil for imported gasoline and diesel fuel as part of measures to ensure the supply of petroleum products throughout the country.

Currently, NNPC swap contracts account for about 70 percent of Nigeria's imports, and 30 percent through the spot market, one source has been added.

Swap contracts took effect last July and were due to expire in a year, by June 2018.

The managing director of the corporation, Dr. Maykanti Baru, previously announced the renewal of transactions until the end of this year.

NNPC merged foreign trading firms with local partners to exchange swaps. The corporation separately holds extensive discussions with some owners of exchange agreements to invest in the rehabilitation of its refineries.

It was also collected that two consortia were selected this year, but smoothing of project funding was slow.

The list of 10 DSDP groups includes: Trader / Refinery Local partner (s) Volume (minimum expected) Trafigura AA Rano 33,000 bpd; Petrocam Rainoil / Falcon 33,000 barrels per day; Crest Mocoh Heyden 33,000 barrels per day; Cepsa Oando 33,000 barrels per day; Sahara SIR 33,000 barrels per day; Mercury Matrix / Rakhmania 33,000 barrels per day; Socar Hyde 33,000 barrels per day; Litasco MRS 33,000 barrels per day; Vitol Varo 33,000 barrels per day; and a total of 33,000.

Despite the fact that the refinery's capacity is about 445,000 barrels per day, NNPC plants for many years lack, which makes Nigeria completely dependent on imports to meet the needs of domestic gasoline and diesel fuel. Statistics show that fuel consumption in the country is about 40 million liters per day.

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