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LequteMan
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The Nigerian government is set to eliminate middle men in crude oil swap agreements.
Starting from March the agreement will be replaced with a system under which it will directly sell crude oil to refiners and purchase refined oil products from them, NNPC said on Tuesday.
"The crude-for-products exchange arrangement popularly referred to as crude swap will be replaced by a Direct-Sale-Direct-Purchase (DSDP) arrangement which would take off next month," NNPC spokesman Ohi Alegbe said on Tuesday.
Alegbe said this had been announced by Emmanuel Ibe Kachikwu, minister of state for petroleum resources, during an appearance before a parliamentary committee set up to investigate NNPC swap arrangements.
"The minister stated that the DSDP option eliminates all the cost elements of middlemen and gives the NNPC the latitude to take control of sale and purchase of the crude oil transaction with its partners, adding that the initiative would save $1 billion for the federal government," said Alegbe.
NNPC had said in November that it would move away from swap agreements, also called "offshore processing arrangements" (OPAs), to improve transparency.
Reuters
Starting from March the agreement will be replaced with a system under which it will directly sell crude oil to refiners and purchase refined oil products from them, NNPC said on Tuesday.
"The crude-for-products exchange arrangement popularly referred to as crude swap will be replaced by a Direct-Sale-Direct-Purchase (DSDP) arrangement which would take off next month," NNPC spokesman Ohi Alegbe said on Tuesday.
Alegbe said this had been announced by Emmanuel Ibe Kachikwu, minister of state for petroleum resources, during an appearance before a parliamentary committee set up to investigate NNPC swap arrangements.
"The minister stated that the DSDP option eliminates all the cost elements of middlemen and gives the NNPC the latitude to take control of sale and purchase of the crude oil transaction with its partners, adding that the initiative would save $1 billion for the federal government," said Alegbe.
NNPC had said in November that it would move away from swap agreements, also called "offshore processing arrangements" (OPAs), to improve transparency.
Reuters
