Nigeria rounds off USD6 billion oil swap deal

Peter robinson

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
 Trafigura            AA Rano              33,000 bpd 
 Petrocam             Rainoil/Falcon       33,000 bpd 
 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