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NNPC plans to lift 80% of crude oil — and that’s bad news for Oando and Sahara

NNPC plans to lift 80% of crude oil — and that’s bad news for Oando and Sahara
September 11
08:32 2017
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The Nigerian National Petroleum Corporation (NNPC) is planning to allocate 80 percent of crude lifting deal to NNPC Trading, an arm of the corporation which evolved from the merger of its trading companies.

Ibrahim Waya, managing director of NNPC Trading Limited, revealed this in an interview published in the corporation’s quarterly magazine.

NNPC Trading currently handles 40% of the country’s oil lifting.

In January 2017, the federal government awarded one-year crude lifting contracts, covering about 1.31 million barrels per day, to 39 companies — 18 of them Nigerian, 11 international trading houses, five foreign refineries, three national oil companies and two NNPC trading arms.

All the contracts are for 32,000 barrels per day except Duke Oil Ltd, an arm of the NNPC, which trades 90,000 barrels per day.

Some of the local beneficiaries, whose share of oil lifting contracts will be affected, are Oando Trading, Sahara, MRS Oil and Gas, A.A. Rano, Bono, Masters Energy, Eterna Oil and Gas, Cassiva Energy, Hyde Energy, Brittania-U, Northwest Petroleum and Shoreline Limited.

Some of the international oil traders are Trafigura, ENOC Trading, BP Trading, Total Trading, Heritage Oil and Glencore.

India Oil Company, Sinopec of China and Saccoil of South Africa fall under the government-to-government category.

But Waya said Maikanti Baru, group managing director of the NNPC, has directed NNPC Trading to take charge of 80 percent of the deal by the end of 2018.

“The current management of NNPC under the watch of Dr Baru is giving us every support to jerk (jack) up our operation from 10 percent to 40 percent,” he said.

“And the GMD told us that what he wants to achieve for trading is that by the end of 2018, he wants NNPC trading to have 80 percent in terms of Nigeria’s crude oil and also conversely by the end of 2018, we want to do every form of import of products, if need be to augment the local production of products through NNPC Trading.”

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Copyright 2017 TheCable. Permission to use quotations from this article is granted subject to appropriate credit being given to www.thecable.ng as the source.
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