FG Cancels NNPC-Traders Oil Swap Deal

The Offshore Processing Agreement, OPA, and crude swap deals for refined oil products between the Nigerian National Petroleum Corporation, NNPC, and oil marketers have been terminated by the

Federal Government.

This was contained in a statement issued in Abuja by President Muhammadu Buhari’s spokesman, Femi Adesina.

The statement said, “Mr President has approved the cancellation of the oil swap contracts. Mr. President has publicly expressed his displeasure over this oil swap deal.”

The crude-oil-swap deals were designed to supply petrol to Nigeria, which relies on imports for the bulk of its domestic consumption, due to the poor functioning of its four refineries that produce below capacity. The country allocated 210,000 barrels per day of crude to swap for products in 2015.

However, the refineries have been working in the past few weeks.

The marketers involved in the transactions include Trafigura, Vitol, Aiteo Energy Resources, Mercuria, Glencore, Taleveras Group Nigeria Limited, Sahara Energy Limited, Etena Oil and Gas Limited, Ontario Oil and Gas and Rahmaniya Oil and Gas.