Hungary Shows Interest in Nigerian Crude Oil, LNG

• Hungary Shows Interest in Nigerian Crude Oil, LNG

The Hungarian government has indicated interest in purchasing crude oil and Liquefied Natural Gas from Nigeria.

The Hungarian Ambassador to Nigeria, Prof. Gabor Ternak, who disclosed this during a courtesy visit to the Group Managing Director of the Nigerian National Petroleum Corporation, Maikanti Baru, in Abuja, said the decision to import crude oil and LNG from Nigeria was informed by the need to bridge the current supply gap being experienced in his country.

“Hungary depends on oil importation to serve its energy needs as the country is non-oil producing. We want to diversify our sources of crude oil and LNG imports, and we are considering purchasing these products from Nigeria,” Ternak was quoted as saying in a statement by the NNPC on Wednesday.

He said Nigerian crude oil would be of great help to Hungarian refineries involved in large scale commercial refining.

The envoy stated that Nigeria could also leverage on the bilateral relationship with his country by engaging the services of Hungarian firms that specialised in the repair, maintenance and building of refineries as well as medical services.

Ternak said Hungarian universities with many years of oil and gas engineering expertise could assist Nigeria in the areas of capacity building of oil workers.

In his remarks, Baru stated that the corporation had commenced a tender process for the selection of the 2018 crude oil off-takers, adding that Hungarian companies could utilise the opportunity by participating in the exercise to maximise value from direct purchase, rather than going through a third-party.

“If you don’t participate in the tender process, you would have to buy the products from one of the traders. However, if you participate with companies and refineries that meet our requirements, they can be shortlisted as off-takers,” Baru said.

He explained that Hungary could purchase LNG through spot cargo, an arrangement in which excess production is given to registered off-takers with the Nigerian Liquefied Natural Gas Limited.

“Normally, gas business is a long-term business and the NLNG is not different; we already have existing 20-year contract that will expire by 2022. Nevertheless, we have what is called spot cargoes, when there is excess production and the current contractors have got their share as enshrined in the contract, the excess production will be given to registered off-takers in the system,” he said.

Baru noted that Hungarian companies could submit their profiles to the NLNG for possible engagement as off-takers of spot cargoes after meeting the standard requirements.

The NNPC GMD stated that works on the refurbishment of the corporation’s refineries through original builders of the plants had commenced and that Hungarian firms with the requisite expertise could be considered through sub-contracting by the main contractors.

He said the NNPC, through its subsidiary institution, the Nigerian Leadership Academy, would look into possible areas of collaboration with Hungarian universities for in-country capacity building of oil and gas workers.