NNPC Selects Vitol, Trafigura, Sahara, Oando, 46 Others for Crude Term Contracts

NNPC Nigeria
  • NNPC Selects Vitol, Trafigura, Sahara, Oando, 46 Others for Crude Term Contracts

The Nigerian National Petroleum Corporation (NNPC) has issued the 2018/2020 crude export contracts to 50 local and international oil traders, including Vitol, Trafigura and Glencore.

Checks showed that as part of the efforts to encourage local participation in the lifting contracts, the corporation selected 20 Nigerian companies, unlike in the 2017/2018 contracts where 18 Nigerian companies made the list.

Also, unlike the 2017/2018 contracts where all the contracts were for 32,000 barrels per day (bpd) except for Duke Oil Limited, the oil trading arm of NNPC which got a term contract for 90,000bpd, the crude allocations for the 2018/2020 contracts are for 30,000bpd.

According to the allocation paper signed by NNPC’s Group General Manager in charge of Crude Oil Marketing Division, Mr. Mele Kyari, each of the 50 companies would lift 950,000 barrels of crude oil in the two-year duration of the contracts, which would run from July 2018 to June 2020.

Investigation revealed that apart from the three world’s largest oil traders, several local and international traders such as Total, Oando, Masters Energy, Sahara Group and NNPC’s Duke Oil also made the final list.

Other beneficiaries of the two-year term contracts include MRS, Matrix Energy, Aipec, AMG, Arkleen, Augusta, Barbedos, BB Energy, Bono Energy, Calson, Cassiva, Cepsa, Cretus, Eterna Oil, Gladius Commodities, Hinstock, HPCL, Leighton, Levene, Litasco and Mocoh.

Also included in the list is Emadeb, a fast-growing Nigerian oil trader, AA Rano, North West, Ocean Bed (Sahara), Petraco, Petrogras, Propetrol, Prudent, Sacoil, SEER, Setana Energy, Setraco, Shoreline, Socar, Sonara, Ultimate Gas, Voyage, West African Gas, Zitts and Lords, ZR Energy (Trafigura) and Obat Oil & Gas.

The contracts would run for two years, unlike previous contracts, which were valid for one year.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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