Nigeria gives more oil purchase deals to local firms as vote looms

16th May 2018

By: Reuters

  

Font size: - +

State oil firm NNPC has awarded 50 companies with contracts to buy Nigerian crude and more than half of them are local firms, foreign and Nigerian trading sources said.

Of the total, 32 were local companies, doubling the number of awards to Nigerian firms compared to 2017.

NNPC also awarded contracts to supply crude to 12 governments, although it was not clear how many of the deals would be handled by the companies already on the list of awards.

NNPC awards the oil purchase contracts annually, but sources said the deals this year were for two years not one year.

Contract awards were announced in January last year. Sources said the government may have delayed an announcement this time by several months as it sought to line up more local firms for awards, so it could drum up support for next year's election.

The sources said a partial list of firms awarded deals emerged on Monday, with a final list coming out on Tuesday.

This year's overall total of 50 foreign and local firms was more than the 39 listed in 2017. The list last year also included three bilateral government deals.

NNPC did not respond to calls and emailed requests for comment.

Nigeria's oil ministry said it produced more than two-million barrels a day of crude and condensate in April. Exports were expected to average 1.8-million barrels a day in the first half of 2018, up from to 1.6-million barrels a day in 2017, loading programmes showed.

Edited by Reuters

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION