”Your prayer 5 above approved – PMB”

With those words, President Muhammadu Buhari on 13th August cancelled the controversial offshore processing and oil swap deals initiated in January this year by the outgone administration of Dr. Goodluck Jonathan.

The agreement was earlier billed to last till December 2016.

President Buhari’s approval is in a bid by the new leadership of the Nigerian National Petroleum Corporation (NNPC) to ensure transparency and due process.

In a memo to the President on August 12, the NNPC sought approval to terminate all such current contracts following a presidential directive.

“This memo purports to seek Mr President’s approval to terminate all current Offshore Processing and SWAP contracts and commence a fresh re-tendering process to ensure transparency, due process and optimized contract terms in favour of the NNPC,” stated the letter signed by Ibe Kachikwu, the Group Managing Director of NNPC.

Responding, the president approved the request in a memo dated August 13 and signed by the Permanent Secretary of the State House, Nebolisa Emodi.

The NNPC currently swaps a part of its allotted 445,000 barrels of crude per day to some oil companies and in return receives refined products.

Oil swap derives from the fact that Nigeria’s four refineries operate mostly below 50% installed capacity and since 2003, the NNPC has continued to allocate them 445,000 barrels of crude oil per day, which corresponds to 100% capacity. The oil swaps have come under criticism following allegations that they have been opaque and the government has been short-changed in the deals.

In its audit between 2009 and 2012, the Nigerian Extractive Transparency Initiative (NEITI) revealed that crude oil swap arrangements are not cost- effective, especially when compared to product prices and proceeds paid to the NNPC.

The audit exposed under-delivery of products by companies awarded such swap contracts to the tune of $866.189 million, and that this comprises Refined Products Exchange Arrangement of $500.075 million and Offshore Processing Arrangement of $366.114 million.
Civil society groups had repeatedly called for an end to the oil swap deals while also urging the Nigerian government to allocate to local refineries crude product based on operating capacity and the difference should be sold directly as crude.

The Africa Network for Environment and Economic Justice (ANEEJ) had in an advocacy position paper sent to the House of Representatives Committee on Petroleum (Downstream) called on the National Assembly to do all in its powers to end oil swaps in Nigeria.

The House has, however, failed to progress on a motion moved in June by Michael Enyong (Akwa Ibom) seeking an “urgent need for a forensic investigation of the contracts known as Refined Product Exchange Agreement or Swap Contract.” The lawmaker had alleged that Nigeria has lost considerable revenue due to leakages in the accounting system and mismanagement of the economy.

“There is the need to ensure transparency and accountability by the NNPC in the management of revenue accruing to the nation from crude oil, particularly in the prevailing circumstances where major buyers of Nigeria’s crude oil such as the United States has discovered alternative sources,” he said.

With the presidential approval, the NNPC is expected to formally trigger the exit clauses in the current OPA contracts in order to close them and commence a fresh re-tendering process aimed at getting more favourable deals for the government.

http://dailytimes.com.ng/buhari-terminates-oil-swap-agreements/

PMB is always on point.

In its audit between 2009 and 2012, the Nigerian Extractive Transparency Initiative (NEITI) revealed that crude oil swap arrangements are not cost- effective, especially when compared to product prices and proceeds paid to the NNPC.

The audit exposed under-delivery of products by companies awarded such swap contracts to the tune of $866.189 million, and that this comprises Refined Products Exchange Arrangement of $500.075 million and Offshore Processing Arrangement of $366.114 million.

Despite that there were audits between 2009 and 2012 to make FG not enter into this useless agreement, Jona Dunno still could not find the political will not to go ahead.
Modified*
Lalasticlala Obinoscopy Seun, FP please.

buhari is working

haters are hating

Dieziani...wer did u say dat woman is again

Excellent PMB always making giant strides everyday. How did we even wait this late to vote him in?

Baba Is Working!!

Am waiting for d wailers I will coment later...

Sai Buhari...Your Prayers give heavenly feelings

"With the presidential approval, the NNPC is expected to formally trigger the exit clauses in the current OPA contracts in order to close them and commence a fresh re-tendering process aimed at getting more favourable deals for the government".

"Ministerial Prayers and Presidential Approvals: A Case Study of NNPC" would make an empirical study

This is indeed a very good move, I hope some nigerian will give him credit for this and not start calling him a dullard...

K

And some would say he's been doing nothing. Smh!

A dullard remains a dullard no matter what he does....sai Buhari

Ok

I'm here to wail!!!!!!
Wooo

whatever that will better the nation

wa shere...Baba Probe!

Another tales by moonlight, by the lying almajiri squad.

Good policies can only be made by a government with good intentions: Sai Baba!

Another headache for all enemies of progress.

FROM THE OFFICE OF THE NYSC STATE COORDINATOR OF AKWA-IBOM STATE.

Any one with useful information about the corp member below should kindly report to the state coordinator's office at federal secretariat, abak road, uyo, Akwa Ibom state or his Next of kin : kudi Adekunle (08051984440);

Name: Adekunle Akeem Afolabi
Phone number : (08024394665)
Ppa: Itam Secondary School, ITU LGA, Akwa Ibom, Nigeria.

NYSC Officials declared him missing due to the phone call received from his next of kin (08051984440). The last information about the corp member was that ; he left his home at Lagos heading to Akwa Ibom. His number have been switched off since then and he has not been reporting to his PPA or seen by anyone till date.

Kindly froward this message to as many as you can in order to find a brother.

Good.

Buhari blocked another possible loot-hole.

Kudos to u my able presido.

only a fool will say this man does not know what he's doing.

excellent but in-country refining capacity should be improved

they do not know what this means,
but they are already hailing!
like somebody dash them gala!

Receive Sense!

Buhari?? A name that give Tanoid hypertension.... Buhari?? A name that makes wailers "Type Before Thinking"....

(( If you can remember, some PDP members died suddenly after Buhari was announce as a winner.. The truth is that they were killed by High Blood Pressure ))

How many wailers are around??

Barcanista?!? I told you sometimes ago that I hate you... And some supported me

Click Like if you think that "Barcanista is a Propaganda"

Click Share if you think that Wailers will be no more by December.......

hmmm

From probes to terminations.. kontinu

Good work. No more business as usual. Let everythng be done accordingly.

atlwireles:
Another tales by moonlight, by the lying almajiri squad.

@lying almajiri squad...

jommysakwe:
FROM THE OFFICE OF THE NYSC STATE COORDINATOR OF AKWA-IBOM STATE.

Any one with useful information about the corp member below should kindly report to the state coordinator's office at federal secretariat, abak road, uyo, Akwa Ibom state or his Next of kin : kudi Adekunle (08051984440);

Name: Adekunle Akeem Afolabi
Phone number : (08024394665)
Ppa: Itam Secondary School, ITU LGA, Akwa Ibom, Nigeria.

NYSC Officials declared him missing due to the phone call received from his next of kin (08051984440). The last information about the corp member was that ; he left his home at Lagos heading to Akwa Ibom. His number have been switched off since then and he has not been reporting to his PPA or seen by anyone till date.

Kindly froward this message to as many as you can in order to find a brother.

i hope he was not mistaken for Abobaku ni