The Nigerian National Petroleum Corporation, NNPC has is said to be in the final stage of signing an oil swap deal worth USD6 billion in exchange more than 300,000 barrels per day (bpd).
The swap will be for petroleum products such as imported gasoline and diesel, sources with direct knowledge of the process told Thomson Reuters.
The deal will enable Nigeria to reduce its depletion of its scarce Forex holding for the importation of finished petroleum products.
Accroding to sources at Reuters, the fuel quality in the final agreements was not immediately clear, but July 1 is the same deadline the country set for switching over to higher quality, lower-sulphur fuels that create less toxic fumes.
Sources disclosed that Sulphur levels were a major sticking point in the negotiations. The Ministry of Environment and the Standards Organization of Nigeria, the body responsible for setting requirements for imported goods, promised a switch to 150 ppm gasoline and 50 ppm diesel.
The following companies have received their allocation as state below:
The following is a list of the 10 groupings: Trader/Refinery Local partner(s) Volume (minimum expected) Trafigura AA Rano 33,000 bpd Petrocam Rainoil/Falcon 33,000 bpd Crest Mocoh Heyden 33,000 bpd Cepsa Oando 33,000 bpd Sahara SIR 33,000 bpd Mercuria Matrix/Rahmaniya 33,000 bpd Socar Hyde 33,000 bpd Litasco MRS 33,000 bpd Vitol Varo 33,000 bpd Total Total 33,000 bpd 10 groupings 330,000 bpd