The Nigerian National Petroleum Corporation (NNPC) announced it has received 128 bids from companies that are interested in swapping processed fuel for 800,000b/d of unrefined crude in 2017, reported Ecofin Agency.
NNPC’s Managing Director, Maikanti Baru, stated: “This year’s program for direct sale of crude oil and direct purchase of products (DSDP) is about 800,000 barrels per day at most,” reported Rezponder News.
During 2016, Nigeria replaced crude oil swap deals with DSDP, according to which it will sell crude oil directly to refiners and in exchange it will receive refined oil products.
Baru added: “The DSDP has helped us achieve at least $500 million reductions in the amount we pay for demurrage on the supplied products. It also ensures the supply from refineries is augmented to meet national supply demand and also maintain 30 days sufficiency reserve, especially for petrol. The DSDP promotes transparency in the petroleum industry.”