BUSINESS NNPC saves $500m with Equities halt losing new oil swap deal – GMD streak with N112bn gain
The group managing director (GMD) of the Nigerian National Petroleum Corporation (NNPC) Maikanti Baru has said that the Direct Sale and Direct Purchase (DSDP) of crude oil scheme introduced by the corporation has in the last one year saved the country over half a billion dollars through major reduction in the amount NNPC pays for both demurrage and petroleum products.
Baru said this at the NNPC Towers in Abuja on Thursday while declaring bids open for another round of the DSDP- a system NNPC uses to swap crude for fuel.
NNPC had in 2016 replaced the offshore processing arrangement (OPA) and crude oil swap - contracts through which it imports petrol to the country - with the DSDP arrangement.
It cancelled the deal after heavy criticism trailed the contracts whose terms short-changed Nigeria.
128 companies comprising locals- MRS, Aiteo, Conoil, Shoreline and foreign oil trading companies- Gunvor, Shell, Trafigura among others submitted bids for the latest round of the DSDP which is scheduled to last for the next one year, stating from 1st April this year.
About 800,000 barrels per day of crude is said to be available for the latest programme.
Baru explained that the DSDP has helped greatly in the stabilization of products supply to the nation since its inception. FLIGHT
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