₦airaland Forum

THE PROPAGANDA OF FORWARD SALE OF NIGERIA'S CRUDE OIL
A forward sale of crude oil refers to an agreement to sell a specific quantity of crude oil at a set price on a specific date in the future. This type of agreement is a common hedging strategy used by oil producers, refiners, and traders to manage price risk.
It's true that NNPCL entered into ‘cash for crude’ deals worth about $5.6 billion with some of its business partners.
For instance, NPDC, a subsidiary of the NNPC, has a capital commitment contract of $1.04 trillion with Eagle Export Financing Limited for the forward sale agreement for the delivery of crude oil.
No exchange of cash: No money changes hands until the delivery date.
Until now there is no any factual evidence that can prove the much propagated propaganda on selling of crude oil in advance. Many PR guys have been hired running from one media house to another trying to capitalise on the ignorance or laziness of Nigerians who aren't willing to ask questions or dig for facts.

Tinubu reverts to defending Naira with NNPC’s $3bn AFREXIM loan deal
For the first time in history, Nigeria to pay 11.85% on Afrexim-NNPCL $3.3bn loan, pledges 164m barrels as security.
Nigeria to pay Afrexim-NNPC $3.3bn loan with $12bn worth of oil. Nigeria will pay an interest of 11.85 percent per annum on the $3.3 billion “pre-export finance facility” (PxF) facilitated by the Nigerian National Petroleum Company (NNPC) Ltd and arranged by Afrexim Bank.
Loan Amount: $3.3bn
Tenure: 5yrs
Interest: 11.87%
Principal Repayment+Interest = $12bn
Loan Broker: UBA
Loan brokers fee: 2% ($66m)
https://businessday.ng/news/article/tinubu-reverts-to-defending-naira-with-nnpcs-3bn-afrexim-loan-deal/

FORWARD SALES OF CRUDE OIL
Forward sales is standard practise in oil and gas industry. Oil or gas is not an off the shelf item, you enter into forward contracts to plan your cashflow as seller and for buyer to be assured of regular supply of products. Forward sales is different from pledging your oil income/receipt as repayment for loan.
PMB executed at least 7 forward sales agreements with the NNPC. We have 140,000 bpd + ( PMB forward sales ).
Normally, at 1.2m bpd production and 60/ 40 JV, we should get a minimum of 600k - 700k bpd. If we remove the various forward sales agreements, we may be left with 150k - 200k. This is the leftover equity value that earns us our FX.
Forward sales of crude oil play a crucial role in the global oil market, enabling participants to manage risk, secure supply, and optimize trading strategies.

Total import from Malta went from zero to N1.03 trillion in 2023, NBS data reveals
In the first quarter of 2023, Nigeria’s imports from Malta recorded a value of zero, representing 0% of the total imports for that period. This lack of imports set a stark contrast for the subsequent quarters.
By the second quarter, import from Malta was N181.55 billion, accounting for 3.17% of Nigeria’s total imports for the period (this is immediately when Tinubu was sworn in).
The upward trend continued into Q3 2023, with imports from Malta soaring to N561.37 billion, representing a 6.64% share of the total imports for the quarter, showcasing a significant increase of 209.20% when compared to the previous quarter.
However, by Q4 2023, there was a sharp decline in the value of imports from Malta. The imports dropped by 48.01% to N291.98 billion, contributing to only 2.07% of Nigeria’s total imports for the quarter.
https://nairametrics.com/2024/07/28/total-import-from-malta-went-from-zero-to-n1-03-trillion-in-2023-nbs-data-reveals/

NNPCL CABALS/MAFIAS MALTA BLENDING PLANT
When Buhari came into power he blocked NNPCL Mafias' Malta blending plant through which NNPCL & other crook marketers and Govt officials used to import dirty oil to Nigeria a year after making NNPC sole importer of crude oil.
PETROLEUM OIL IMPORTATION FROM MALTA, 2013-2023
2013: $47.5 million
2014: $59.98 million
2015: $117.01 million
2016: $13.32 million
2017 to 2022: Nil
2023: $2.08 billion
Immediately after his exit from office in the same year the mafias regrouped and we imported $2.08b oil from the controversial plant.

MALTA SAGA
When the Malta-NNPC comment was made by Dangote, there was suspicion that there is more to it. A group decided to investigate further.

Firstly, here is the breakdown of the whole Oil theft process and how Oil exporting and importing business works here in Nigeria.
NNPC grants importation licenses to a select group of oil companies, which are responsible for importing petroleum products into the country. These companies set the prices for petroleum products, and the media often refer to them as "oil marketers."
We’ve another set responsible for exporting/selling unrefined petroleum products both locally nd internationally. NNPC and few partner companies plays a major role in this sector, along with high-ranking govt officials, military leaders, & politicians who are involved in oil theft.
To better understand this thread here is the brief explanation of how oil exportation and importation works in Nigeria.
Please note every point you will need them as references as the explanation of the sorted items progressed:
1. Extraction: Oil is extracted from the ground using drilling rigs.
2. Processing: The crude oil is exported (internationally) to refineries where it is processed into refined products.
3. Transportation: The processed oil are transported from the refinery to storage tanks, blending facilities, and ports, typically via pipelines or ships.
4. Export: At the port, the oil is loaded onto tankers or other vessels and shipped to Nigeria and other countries.
5. Sale: The oil is sold to buyers in Nigeria at a price set by the importer (oil marketer). The government subsidizes a significant portion of the oil price to make it more affordable for citizens, a practice known as fuel subsidy.

Now let’s link the list together; recently, Oando PLC announced the approval to acquire 100% of Nigerian Agip Oil Company. This effectively means that the Tinubu family now owns Agip Oil, which is part of Eni S.p.A., an Italian multinational oil and gas company.
Agip Oil operates 17 onshore oil blocks and produces 11 million barrels of oil and condensates annually, and it also manages the Bonny natural gas liquefaction plant. One might wonder why such a successful company would divest 100% of such a critical asset.
Observing similar situations, like the case with Dangote, suggests that this sale was not made lightly. Now, these crucial oil fields and plants in Nigeria are under the control of Tinubu through Oando PLC which is Tinubu’s family owned not even NNPC.
Continuing, with their control over substantial oil reserves in the Niger Delta and the ability to explore further through Agip Oil, their next step is refining. Instead of building a refinery in Nigeria, they opted to construct one in Malta.
This move allows them to exploit the country's resources and obscure their activities.

In early 2021, Enemed Co Ltd, the leading fuel supplier in Malta, issued a tender for the leasing of storage tanks and a blending facility at the Ras Hanzir Oil Terminal in Malta.
Ras Hanzir Oil Terminal Limited won the bidding. It is owned and operated by the Tinubu family, with Wale Tinubu, who is also the chairman of Oando PLC, serving as its chairman along with other members of the Tinubu family and their associates.

PETROLEUM OIL IMPORTATION FROM MALTA, 2013-2023
2013: $47.5 million
2014: $59.98 million
2015: $117.01 million
2016: $13.32 million
2017 to 2022: Nil
2023: $2.08 billion

#Statisense
(Trademap)

It's

'Did buhari SELL . . . '

And not

'Did buhari SOLD . . . '

Quota system no go kee una from that side

SeeWahala:
It's

'Did buhari SELL . . . '

And not

'Did buhari SOLD . . . '

Quota system no go kee una from that side

SeeWahala:
It's

'Did buhari SELL . . . '

And not

'Did buhari SOLD . . . '

Quota system no go kee una from that side

Thanks for the correction.
I hope the language of subjugation and exploitation has added value to your life!

I was amazed as well when some zombies came out with that clueless lie that Buhari used crude to collect loans
I investigated and found out that it was forwards contracts they were talking about. These contracts became necessary because after Covid, a lot of economies were not as bullish as expected leading to a good amount of Nigerian crude waiting for buyers on the high sea for weeks incurring costs. It was this malady this malady that foward contracts was meant to cure. I don't know where the idea that it was loans came from.
Incidentally, it was actually Tinubu's govt that used some of our crude to get loans from Afreximbank
Zombies are really daft I tell ya

Kukutente23:
I was amazed as well when some zombies came out with that clueless lie that Buhari used crude to collect loans
I investigated and found out that it was forwards contracts they were talking about. These contracts became necessary because after Covid, a lot of economies were not as bullish as expected leading to a good amount of Nigerian crude waiting for buyers on the high sea for weeks incurring costs. It was this malady this malady that foward contracts was meant to cure. I don't know where the idea that it was loans came from.
Incidentally, it was actually Tinubu's govt that used some of our crude to get loans from Afreximbank
Zombies are really daft I tell ya

Very unfortunate how Nigerians can't research and find proofs. Recently when FG borrowed $3.3b from Afrexim Bank in exchange for 164m barrel of crude oil it wasn't hidden but nobody can show data beyond reasonable doubt that we borrowed money in exchange for crude oil. One need to understand the jargons of oil trading to understand the meaning of cash for crude, sales of crude a front among other oil market jargons.

The Buharideen defending zombie went on a windy adventure telling without answering or addressing the big elephant question? Did Buhari sold Nigerian crude oil reserves upfront sir?

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Buhari is the worst president

Is04970:
Buhari is the worst president

This link disagree with you:
https://www.nairaland.com/8112882/complete-legacy-buhari-summary

ArewaNorth:
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Did Buhari expended over 2trillion via way and means?

Did Buhari give out billions anchor borrowers to failed farmers who can't pay back.

Yes or no. No need for story

No!! He never did
That lie came from demented agbadorians high on fermented corn
But you can't blame them cause they borrowed from daft Buharists' template of blaming the former administration for their incompetence and cluelessness

Imagine paying a loan of 3billion dollars with almost 12 billion dollars. Did Tinubu really study accounting? And Ekumeku is just there to eat, no advice as the broker. Why do our leaders hate this country.

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