The Nigerian National Petroleum Corporation (NNPC) Thursday said it had signed a six-month crude-for-product deal with BP Oil International Ltd, to supply Nigeria petrol ahead of the upcoming Yuletide and 2019 general elections.

This is coming as Brazil’s Petroleo Brasileiro SA will sell its 50 per cent stake in a Nigerian oil and gas exploration venture to a consortium led by top oil trader, Vitol for $1.53 billion.


This divestment is the latest step in the Brazilian state-controlled oil company’s debt reduction drive, according to a securities filing on Wednesday.

NNPC said in a statement by its Group General Manager, Public Affairs, Mr. Ndu Ughamadu, that the BP deal was part of the corporation’s Direct Sale-Direct Purchase (DSDP) petrol supply framework.

Ughamadu added that the deal would ensure robust supply of petroleum products across the country and especially going into the Yuletide period and elections which are due early in 2019.

According to the corporation, its deal with the BP will cover up to 20 per cent of the total petrol supply under the DSDP arrangement.

It added that the DSDP basically allows it to exchange crude oil with international oil traders for imported petroleum products over a period of time.

The statement quoted the Group Managing Director of NNPC, Dr. Maikanti Baru, as saying shortly after signing the agreement, that the corporation was committed to ensuring that petrol remained available in Nigeria, and would invite new and old players to participate in the industry.

Baru, explained that over the years, BP had demonstrated the capacity and robustness to augment the forecasted petrol shortfall by NNPC, especially as the winter period approaches and as Nigeria’s elections get underway early into the New Year.

“As a reliable supplier, we think BP is a brand that we can always partner with. We trust the company and we have a good relationship with it. We also believe in the company’s commitment towards the development of local content,” said Baru in the statement.

He commended BP for choosing to partner with AYM Shafa, a local oil company, which he said had been expanding its downstream footprints across the nook and cranny of the country.

According to Baru: “BP’s partnership with AYM Shafa towards delivering on its DSDP obligations makes it a perfect fit for our plans to ensure that there is adequate supply of products throughout the coming Yuletide and even beyond the election period.
“In AYM Shafa, you are talking of a local company with over 150 retail outlets, depots as well as a good network of trucks nationwide.”

Responding, the Head of Marketing and Origination of BP’s oil trading business, Mr. John Goodridge, said in the statement that it was a great honour for his company to be trusted by the NNPC as one of its strategic suppliers.
“We are delighted to have the opportunity to work more closely with the NNPC. Going forward, we hope to grow this mutual relationship to greater things,” Goodridge said.

He stated that his company has a global network of refineries capable of generating the products to meet NNPC’s demands, adding that the objectives is to ensure that over the next six months, Nigeria does not witness any products shortages.

The DSDP was introduced in 2016, as a model carried out through direct sales of crude oil to refiners or consultants, who in turn supply NNPC with equivalent worth of products.

Since its inception, the DSDP model has saved NNPC millions of dollars that would have been paid through demurrage, and also proven to be a major component of its petroleum products supply portfolio which ensures stability in products supply nationwide.

Petrobras to Sell Stake to Vitol-led Group for $1.5 bn

Brazil’s Petroleo Brasileiro SA will sell its 50 per cent stake in a Nigerian oil and gas exploration venture to a consortium led by top oil trader Vitol for $1.53 billion.

This development is the latest step in the state-controlled oil company’s debt reduction drive, according to a securities filing on Wednesday.

The other 50 per cent stake in Petrobras Oil and Gas BV, also known as Petrobras Africa, is owned by Brazilian investment bank BTG Pactual, which in a Wednesday filing confirmed a Reuters report that it would likely hang on to its portion after previously mulling a sale.

Petrobras, one of the world’s most indebted oil majors, had targeted $21 billion in asset sales for 2017 and 2018, but only succeeded in unloading $9.5 billion worth by the end of the first half.

The deal involves a stake in some of two deepwater exploration blocks that are among Nigeria’s largest and lowest-cost fields.
Swiss-based Vitol is expected to shoulder the largest part of the investment, spending an estimated $1 billion, according to a Reuters report in June about the oil trader’s interest..

Vancouver-based Africa Oil Corp and Delonex Energy, an Africa-focused oil company, are members of the consortium.
Petrobras earlier this year sold a 25 percent stake in Roncador, one of Brazil’s largest oil fields, to Norway’s Equinor ASA for about $2 billion.

It is also in talks to sell its TAG gas pipeline unit, probably to a group led by France´s Engie SA, for more than $7 billion, although the process has been halted by a Brazilian Supreme Court injunction.

https://www.akelicious.net/2018/11/nnpc-shores-up-fuel-supply-with-bp-oil.html

The DOLLAR scam racket Baru is doing in NNPC dollar gate will shock the world next year when buhari goes back to his village.

Ganduje will be a child's play

Mark my word.

Nothing go make me no probe Buhari

I must probe and make sure he spend the rest of his life in jail

Nnpc and shudy deals.

Hmmm... Izzokay

The only time our polthiefians act like they care is when they need our help(election period).


i could remember the number of days i slept at filling station last year december all because of fuel scarcity.


now that election is around,they need political scores. They are quick to put things in order.


if they like,they should sell petrol for free BUHARI MUST GO

....

googlepikins:
What Baru is doing in NNPC dollar gate will shock the world next year when buhari goes back to his village.

Ganduje will be a child's play

Mark my world.

I still doubt if anybody can surpass madueke diezani

Why are we perpetual importer of the finished product? This is a big shame.

Refinery?

2 fraudulent company just signed a deal, expect the headlines a few years down the line

oyejideogunjumo:
Why are we perpetual importer of the finished product? This is a big shame.

Exactly why revolution is what we need in this country rather than restructuring.

most of this refinaries abroad are own by our top polithiefians. If they fix our local refineries,who will patronize them.

Basically we would be exchanging crude oil for refined product

Sounds interesting. Especially as we don't have sufficent refining capacity.

Let's see how it goes. Although...this is a stopgap measure. Thing is...we have to get in more investment in our oil industry....and we can only do that by removing that thing called subsidy.

If after this deal per litter fuel will sell at 60N then is a good deal and welcome development but if not...let amadioha nd sango strike their balls.....

Enough of all this stories; Nigerians deserve better livelyhood.

Mrakeli:
The Nigerian National Petroleum Corporation (NNPC) Thursday said it had signed a six-month crude-for-product deal with BP Oil International Ltd, to supply Nigeria petrol ahead of the upcoming Yuletide and 2019 general elections.

This is coming as Brazil’s Petroleo Brasileiro SA will sell its 50 per cent stake in a Nigerian oil and gas exploration venture to a consortium led by top oil trader, Vitol for $1.53 billion.


This divestment is the latest step in the Brazilian state-controlled oil company’s debt reduction drive, according to a securities filing on Wednesday.

NNPC said in a statement by its Group General Manager, Public Affairs, Mr. Ndu Ughamadu, that the BP deal was part of the corporation’s Direct Sale-Direct Purchase (DSDP) petrol supply framework.

Ughamadu added that the deal would ensure robust supply of petroleum products across the country and especially going into the Yuletide period and elections which are due early in 2019.

According to the corporation, its deal with the BP will cover up to 20 per cent of the total petrol supply under the DSDP arrangement.

It added that the DSDP basically allows it to exchange crude oil with international oil traders for imported petroleum products over a period of time.

The statement quoted the Group Managing Director of NNPC, Dr. Maikanti Baru, as saying shortly after signing the agreement, that the corporation was committed to ensuring that petrol remained available in Nigeria, and would invite new and old players to participate in the industry.

Baru, explained that over the years, BP had demonstrated the capacity and robustness to augment the forecasted petrol shortfall by NNPC, especially as the winter period approaches and as Nigeria’s elections get underway early into the New Year.

“As a reliable supplier, we think BP is a brand that we can always partner with. We trust the company and we have a good relationship with it. We also believe in the company’s commitment towards the development of local content,” said Baru in the statement.

He commended BP for choosing to partner with AYM Shafa, a local oil company, which he said had been expanding its downstream footprints across the nook and cranny of the country.

According to Baru: “BP’s partnership with AYM Shafa towards delivering on its DSDP obligations makes it a perfect fit for our plans to ensure that there is adequate supply of products throughout the coming Yuletide and even beyond the election period.
“In AYM Shafa, you are talking of a local company with over 150 retail outlets, depots as well as a good network of trucks nationwide.”

Responding, the Head of Marketing and Origination of BP’s oil trading business, Mr. John Goodridge, said in the statement that it was a great honour for his company to be trusted by the NNPC as one of its strategic suppliers.
“We are delighted to have the opportunity to work more closely with the NNPC. Going forward, we hope to grow this mutual relationship to greater things,” Goodridge said.

He stated that his company has a global network of refineries capable of generating the products to meet NNPC’s demands, adding that the objectives is to ensure that over the next six months, Nigeria does not witness any products shortages.

The DSDP was introduced in 2016, as a model carried out through direct sales of crude oil to refiners or consultants, who in turn supply NNPC with equivalent worth of products.

Since its inception, the DSDP model has saved NNPC millions of dollars that would have been paid through demurrage, and also proven to be a major component of its petroleum products supply portfolio which ensures stability in products supply nationwide.

Petrobras to Sell Stake to Vitol-led Group for $1.5 bn

Brazil’s Petroleo Brasileiro SA will sell its 50 per cent stake in a Nigerian oil and gas exploration venture to a consortium led by top oil trader Vitol for $1.53 billion.

This development is the latest step in the state-controlled oil company’s debt reduction drive, according to a securities filing on Wednesday.

The other 50 per cent stake in Petrobras Oil and Gas BV, also known as Petrobras Africa, is owned by Brazilian investment bank BTG Pactual, which in a Wednesday filing confirmed a Reuters report that it would likely hang on to its portion after previously mulling a sale.

Petrobras, one of the world’s most indebted oil majors, had targeted $21 billion in asset sales for 2017 and 2018, but only succeeded in unloading $9.5 billion worth by the end of the first half.

The deal involves a stake in some of two deepwater exploration blocks that are among Nigeria’s largest and lowest-cost fields.
Swiss-based Vitol is expected to shoulder the largest part of the investment, spending an estimated $1 billion, according to a Reuters report in June about the oil trader’s interest..

Vancouver-based Africa Oil Corp and Delonex Energy, an Africa-focused oil company, are members of the consortium.
Petrobras earlier this year sold a 25 percent stake in Roncador, one of Brazil’s largest oil fields, to Norway’s Equinor ASA for about $2 billion.

It is also in talks to sell its TAG gas pipeline unit, probably to a group led by France´s Engie SA, for more than $7 billion, although the process has been halted by a Brazilian Supreme Court injunction.

https://www.akelicious.net/2018/11/nnpc-shores-up-fuel-supply-with-bp-oil.html

netflicks:
If after this deal per litter fuel will sell at 60N then is a good deal and welcome development but if not...let amadioha nd sango strike their balls.....

Fuel is not going to go to N60 per liter...and any politican who promises you that is lying.

Only way that can happen is if oilgoes up to $140 and above per barrel, giving us enough dollars to buffer the naira...and improve its value. Again, not going to happen.

Improving domestic refining capacity....won't solve the problem. I doubt it costs less than N100 to refine one liter of fuel in Nigeria.

hope things get better


buy your btc @ #350 /$

oyejideogunjumo:
Why are we perpetual importer of the finished product? This is a big shame.

Because building a new refinery...is going to cost at least $9billion....and we need at least 3 of these refinieries.

(Dangote's refinery cost $9bn. $6bn of that money came from loans from international lenders and the African Development Bank...)

Our foreign reserves is $40bn....

The only way to get new refineries...is to remove fuel subsidy, which in turn would encourage investors to build refineries, and make their profits. But Nigerians don't want price increases.

lytech1:

Exactly why revolution is what we need in this country rather than restructuring.

most of this refinaries abroad are own by our top polithiefians. If they fix our local refineries,who will patronize them.

I heard so. They prefer it abroad than making the ones at home work so as to make Nigeria and Nigerians permanent in their pockets.
May God deliver us ooo

theoldpretender:


Fuel is not going to go to N60 per liter...and any politican who promises you that is lying.

Only way that can happen is if oilgoes up to $140 and above per barrel, giving us enough dollars to buffer the naira...and improve its value. Again, not going to happen.

Improving domestic refining capacity....won't solve the problem. I doubt it costs less than N100 to refine one liter of fuel in Nigeria.

I agree with your point but if we have good working refineries, govt can subsidize their output and we can buy at less. they will also have access to crude so the refined product can be sufficient depending on the capacity of the refinery.....

netflicks:


I agree with your point but if we have good working refineries, govt can subsidize their output and we can buy at less. they will also have access to crude so the refined product can be sufficient depending on the capacity of the refinery.....

I doubt any private refinery owner would agree to subsidised fuel.

Subsides prevent sufficent profits from being made. (which is why we have scams such as subsidy claims being made for fuel not being imported, people selling fuel across the border, etc.).

I also think it is becoming financially difficult to keepon subsidising fuel...however due to poltiical expidency, we waste money continuing the current subsidy.

when is dangote coming online?

bluecircle470:


I still doubt if anybody can surpass madueke diezani

Dont worry you go shock when Buhari leaves

hisgrace090:
Nnpc and shudy deals.

Groovenaija360:
Nothing go make me no probe Buhari. I must probe and make sure he spend the rest of his life in jail

lytech1:
I could remember the number of days i slept at filling station last year december all because of fuel scarcity.

now that election is around,they need political scores. They are quick to put things in order. If they like,they should sell petrol for free BUHARI MUST GO

googlepikins:
The DOLLAR scam racket Baru is doing in NNPC dollar gate will shock the world next year when buhari goes back to his village.

Ganduje will be a child's play

Mark my world.

This deal is reminiscent of crude deal Buhari had in place as a military dictator where crude is exchange for finished products we need. The demand at home is met with the rest sold to earn foreign exchange. Either way Nigeria makes money with less billions to waste on the DEAD corruption riddled refineries at home.

For 16 good years no PDP politician can think of such a deal even with the so call most intelligent tribe as been part n parcel of the 16 year rot of the country. Nigerians can see this landmark deal at saving billionaires of dollars lost to petrol import is being ridiculed by the Igbos quoted above.

To put things in proper perspective compare Obj & Ebele fuel importation policy where fraudulent PDP members just drive in empty vessels n demand to be paid billions for nothing in the name of subsidy. Well meaning Nigerians I hope you can see clearly btw the two. By well meaning Nigeria I do not mean any form of Igbo, wether good a bad.

No Igbo should quote me to ask me anything only well meaning sincere Nigerians that want the growth of the country but Igbo are free to insult as usual. Your insult will be returned in double proportion with as much vile bitterness n sorry
Ow your response is laced in.

Did I hear crude for product? IS IT NOT THE SAME OIL SWAP DEAL THAT THE PREVIOUS REGIME DID THAT THE PRESENT GOVERNMENT WERE SHOUTING CORRUPTION, THAT THEY GO BACK TO?

bluecircle470:


I still doubt if anybody can surpass madueke diezani

Did I hear crude for product? IS IT NOT THE SAME OIL SWAP DEAL THAT THE PREVIOUS REGIME DID THAT THE PRESENT GOVERNMENT WERE SHOUTING CORRUPTION, THAT THEY GO BACK TO?

The scam in the oil sector is well known by Buhari, that is why he is the Minister/President of Petroleum.

theoldpretender:


Fuel is not going to go to N60 per liter...and any politican who promises you that is lying.

Only way that can happen is if oilgoes up to $140 and above per barrel, giving us enough dollars to buffer the naira...and improve its value. Again, not going to happen.

Improving domestic refining capacity....won't solve the problem. I doubt it costs less than N100 to refine one liter of fuel in Nigeria.

Forget all those big Grammer, How much e de take our boys in the creek to refine oil products?

Besides, no be only fuel de come out from d refining.