NNPC Awards Oil-For-Fuel Swap Deals

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Femi Adesina and NNPC GMD, Mele Kyari

Nigeria National Petroleum Corporation (NNPC) has issued award letters on Monday for highly sought-after contracts to exchange crude oil for imported fuel, oil industry sources told Reuters.

A total of 15 groupings, with at least 34 companies in total, received award letters, four sources with knowledge of the deals said.

The award letters were circulated on Monday. While the contracts have not yet been signed, that is largely a formality as the terms have been negotiated, the sources said, and the list of companies is unlikely to change.

NNPC spokesman Ndu Ughamadu, when reached for comment, said he would seek verification of the news.

The contracts have supplied virtually all of Nigeria’s gasoline for the past two years, as capped prices mean that other would-be importers cannot make money bringing the fuel into the country. In exchange, the deals provide coveted, and potentially lucrative, access to Nigeria’s crude oil cargoes.

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