NNPC finalizes $6bn worth of oil for product swaps

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The Nigerian National Petroleum Corporation (NNPC) is in the final stage of signing $6 billion worth of deals to exchange more than 300,000 barrels per day (bpd) of crude oil for imported petrol and diesel, sources with direct knowledge of the process told Reuters.

The contracts, which come three months later than expected, include three more pairs of companies than last year, reflecting Nigeria’s increased reliance on NNPC for fuel imports. At least four of the 10 groups have signed contracts, set to begin from July 1, with the rest expected to do so by Friday, the sources said. The NNPC is due to approve them by the end of the week.

The fuel quality in the final agreements was not immediately clear, but July 1 is the same deadline the country set for switching over to higher quality, lower-sulphur fuels that create less toxic fumes. This year’s deal also includes international trading houses, not just oil refineries. The 2016 contracts included only companies with refineries in an effort to cut out middlemen.

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