NNPC to Sign $6b Oil Exchange Deals

NNPC to Sign $6b Oil Exchange Deals

Nigeria’s state oil company is finalizing the signing of $6b worth deals to exchange more than 300,000b/d of crude oil for imported gasoline and diesel, Reuters reported.

According to CNBC Africa, the contracts include three more pairs of companies in comparison to 2016, which indicates Nigeria’s increased reliance on NNPC for fuel imports.

Nigeria’s struggle from the lack of local refining capacity, oil price crash and the militant attacks on the oil industry have all contributed in the growing dependence of the country on fuel imported gasoline, kerosene ,and other petroleum products.

The Contracted Companies list contains several firms from 2016, including Varo Energy, Societe Ivorienne de Raffinage (SIR), while Socar and Mercuria are new additions.

NNPC had formerly announced that 2017’s contracts would exchange up to 800,000b/d of crude oil.

Nigeria has substantially increased its refining output in 2017, but the first quarter average was still only about 25% of its 445,000b/d capacity. The oil producing country failed to run them at higher rates due to years of neglect and consistent theft and sabotage of the pipelines feeding the refineries.


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