NNPC to slash amount of crude oil given to 3rd party traders by 80%

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The NNPC has disclosed that it will drastically cut down by 80 per cent, the amount of Nigerian crude oil it gives to third-party traders to export on its behalf for Nigeria from 2018, THISDAY reports.

It said from the end of 2018, its reformed trading subsidiary – the NNPC Trading Limited, would market 80 per cent of Nigerian crude in the international market, leaving the remaining 20 per cent for third-party traders. Usually, the corporation uses tenured oil lifting contracts with third-party traders to sell volumes of Nigeria’s share of oil produced in its Joint Ventures (JV) and Production Sharing Contracts (PSC) with International Oil Companies (IOCs) operating in the country.

However, in an interview in the latest edition of a refurbished in-house quarterly magazine of the NNPC, the Managing Director of NNPC Trading Limited, Ibrahim Waya, disclosed that from 2018, NNPC would be marketing most of its crude oil with minimal volumes to third-party traders. Waya, explained that the plan was in line with the merger of NNPC’s four trading subsidiaries – Duke Oil; Hyson Carlson; Nigermed; and NAK Oil, into a single unit, and training of young oil traders at the Princeton College of Petroleum Studies, Oxford England, to undertake the task.