The Nigerian National Petroleum Corp (NNPC) intends to handle up to 80% of the country’s crude oil lifting contracts via its trading arm in the next few years as part of efforts to widen its customer reach, a senior official told S&P Global Platts.
Mele Kyari, general manager of state-owned NNPC’s crude oil marketing division said the NNPC’s trading arm Duke Oil will be given more equity [up to 80%] to directly trade and market the country’s crude in the next few years. NNPC allocates the majority of its crude cargoes to trading companies and oil refiners that hold term contracts. These cargoes are then sold by the trading companies to end-users, refiners and other buyers.
India, the largest buyer of Nigerian oil, has always pushed for the NNPC to directly market its crude to ensure its largest buyers have secure supplies, and stop using trading companies and other intermediaries. He also said in an interview on the sidelines of the APPEC conference in Singapore that the corporation planned to sell more crude on a CIF or delivered basis to ensure security of supply. Nigerian crude is mostly sold and priced on an FOB basis.