Nigeria's NNPC issues 2019-2020 crude-for-product tender
Nigeria’s NNPC has issued a crude-for-product swap tender, the company said. The Direct Sale Direct Purchase (DSDP) tender document did not specify the start date or the quantities involved but said the arrangement would be for one year.
The tender is set to close on May 2 at noon (1100 GMT), NNPC said on its official Twitter account.
Crude-for-product swap contracts are the country’s main avenue to meet the bulk of its gasoline and
Nigerian refineries have a capacity of about 445,000 barrels per day (
The crude-for-product swaps were extended until June, sources familiar with the matter said last year.
INVITATION TO TENDER (“ITT”)
— NNPC Group (@NNPCgroup) March 19, 2019
FOR THE 2019 – 2020 DIRECT SALE OF CRUDE OIL AND DIRECT PURCHASE OF PETROLEUM PRODUCT (DSDP)
More details here 👇👇👇https://t.co/pnj3sFoVav pic.twitter.com/e8SdaTUzdt
The existing contract holders, including trading houses Vitol, Trafigura, Mercuria and French oil major Total, started the swaps in mid-2017, accounting for just over 300,000
Nigeria produced 1.82 million
Nigeria has been using swaps for about 10 years. NNPC launched the DSDP model in 2016 and under it, NNPC sells crude oil to refiners or trading houses, who in return, supply mainly gasoline but also other petroleum products such as diesel.
Late last year, NNPC said it had also
Reporting by Noah Browning; Editing by Dale Hudson and Louise Heavens
Comments