NNPC Signs New ‘Crude for Fuel’ Deals With Foreign Refineries

The Nigeria National Petroleum Corporation, NNPC has announced it will award new crude for product swap agreements to Total, Varo Energy, Cepsa and ENI.

The deals, which are expected to begin in February, differ from the former “offshore processing” agreements as they are directly with refineries who can use the crude oil to produce the oil products the country needs, Mele Kyari head of NNPC’s crude marketing unit said on Friday.

NNPC cancelled the initial bidding process for crude swap agreements in November, choosing to go directly to refineries that could process the oil themselves in order to eliminate middlemen.

Bello Rabiu, NNPC’s head of corporate planning, said the company would create a new framework for fuel imports that could reduce the cost of delivering gasoline to stations by 10-15 naira per litre, which would bring gasoline below the price cap of 87 naira per litre and eliminate the need to pay subsidies.

Nigeria Bulletin

Share this article:
  •  
  •  
  •  
  •  
  •  
  •  
join our mailing list

Do you want more articles like this delivered to your inbox?

Join our mailing list to receive the latest news and articles.

PS: Your email WILL NOT BE SPAMMED. See our Privavcy Policy for detail.

Thank you for subscribing. You are now part of our mailing list.

Show/Hide Comments

0 thoughts on “NNPC Signs New ‘Crude for Fuel’ Deals With Foreign Refineries

Leave a Comment

join our mailing list

JOIN OUR MAILING LIST

Get all the latest and most popular news, tips, articles and information from our website delivered straight into your inbox.

Thank you for subscribing to our mailing list. You will now start recieving our periodic newsletter.

Powered byRapidology