The Nigerian National Petroleum Corporation is at the verge of signing a whopping $6bn (N2.25 trn ) worth of deals to exchange more than 300,000 barrels of crude oil per day for imported petroleum products, a source familiar with the issue disclosed to Vigil360.
The deal which is under a new import scheme called Direct Sale and Direct Purchase (DSDP) was introduced in 2016 and was carried out through direct sales of crude oil to refiners or consultants, who in turn supply NNPC with equivalent worth of petroleum products. The NNPC had in January called for tenders for the lifting of crude oil in exchange for refined products under the DSDP model.
Reports reaching Vigil 360 indicate that the NNPC had already signed the agreements with four of the 10 groups, while the rest will be signed today 19th May 2017. The report further disclosed that after several extensions, by at least three months, the deal would come into effect by 1st, July 2017.
For this year, the contracts are given to international oil traders/refiners, which are partnering with indigenous oil marketing companies. The companies are involved are; Trafigura, which is partnering A.A. Rano; Petrocam, partnering Rainoil and Falcon; Mocoh, partnering Heyden; Cepsa, partnering Oando; Societe Ivorienne de Raffinage, (SIR) partnering Sahara ; and Mercuria, partnering Matrix and Rahamaniya.
Others are Socar, Litasco and Vitol, whose indigenous partners are Hyde, MRS and Varo respectively
