NNPC: New oil swap arrangement has saved $500m for Nigeria
Maikanti Baru, the group managing director (GMD) of the Nigerian National Petroleum Corporation (NNPC) says the direct sale and direct purchase (DSDP) of crude oil scheme has saved the country over half a billion dollars in one year.
According to Baru, the said amount was saved through a significant reduction in the amount NNPC pays for both demurrage and petroleum products.
He made this known on Thursday at the NNPC Towers in Abuja while declaring bids open for another round of the DSDP, Daily Trust reports.
MRS, Aiteo, Conoil, Shoreline, Gunvor, Shell, and Trafigura were among the 128 companies that submitted bids for the latest round of the DSDP, which starts April 1 and will last for a year.
According to the NNPC, about 800,000 barrels per day of crude have been made available for the latest programme.
The DSDP, a system NNPC uses to swap crude for fuel, was introduced a year ago.
The corporation had replaced the offshore processing arrangement (OPA) and crude oil swap with the DSDP so as to maximise what Nigeria benefits from oil contracts.
Baru also said the DSDP has helped to stabilise the supply of products across the nation since its introduction.
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